RALLY CONTINUES

Gold is up $4 in early trading and silver is up $.02. Both are well off the highs. Gold reaching a high of $896.40 and silver reaching up to $12.24 before they eased back on early profit-taking. Gold has resistance in the $890 range, perhaps between $890 and $892 and if it closes above that level it will likely make a move to $900 promptly. Oil is down $1.52 at $44.36 a barrel and the dollar is down 2 basis points at 86.62. Equities are soft with the Dow up 4 points. 

The most prominent feature today is that physical demand from Asia is on the rise and that is supportive of the gold price. There is also safe haven demand as there are doubts about the recovery in the equities. Yesterday's tumble in financial stocks unnerved investors prompting them to seek safe haven cover in assets like gold. Further equity losses could drive gold above near term resistance at the $890 level. Equities were weaker on negative comments from Bank of America on loans. There is concern that the U.S. government may take additional steps to bail out the ailing banking system.

On balance, gold is working very hard to overcome resistance in the $890 zone. Whether it manages to do so today remains to be seen. However, it is likely to be overcome with a retest of $900 in the near term. Apparently, only $109 billion remains from the original $700 billion TARP bailout fund. The government has gone through an enormous amount of money with little to show for it.

In an uncertain environment such as we have today, it is best to be properly diversified. Investors should not have all of their eggs in one basket. That is why overemphasis of equities is probably inappropriate at this time. Safe assets that produce income are important to own as well as gold and silver. The precious metals protect one's portfolio from loss of purchasing power. In addition, it seems inevitable that down the road the dollar will begin to lose value rapidly. The debt has grown too large to be managed. With spending continuing at a ridiculous pace, eventually the dollar will succumb to the enormous overhang of debt. When that day arrives it may be necessary to devalue the dollar. Investors need to be prepared in advance for such an event because it will come suddenly and without warning. Moreover, as the dollar devalues, inflation emerges and that too is a key factor for investors to be concerned with. Investors must be forward looking and considering the potential for these various events to occur. I think when one does that then prudence becomes an important consideration and prudence demands that investors own some diversification into gold.

If you do not own gold yet, you should get started at once. You should take advantage of the correction and consolidation that has been underway for the past few months to either establish a position or add to your position. To do so, call Goldline at 1-877-341-2646. Ask them about British Sovereigns, Swiss 20 Francs, Double Eagles and other assets that may be available to you. Select those that best meet your own individual investing needs and objectives. Also, ask them about the Price Guarantee Program, which gives you a two-week window of opportunity to re-price your transaction in the event of a correction. It has been found to be a helpful tool by many. Call Goldline at 1-877-341-2646 for assistance in getting started.

Also, ask for the free information package, which contains a free copy of the American Advisor Newsletter, a $25 value and a free CD interview I did with Frank Barbera. It also contains articles discussing the possibility of formal devaluation of the U.S. dollar, along with articles discussing the possibility of gold rising to between $1,100 and $1,500 an ounce this year. Call Goldline now at 1-877-341-2646 for the free information package.

Investors should contact Goldline and ask them to explain the features, benefits and cost structure of the various gold and silver investments that are available to you. Select those that best meet your own personal and individual investing needs and objectives. Investors looking for low transaction costs may wish to consider bullion assets such as American Eagles, Krugerrands, Canadian Maple Leafs, Silver Bags or Silver Bars. However, the Price Guarantee Program is not available with these assets.

If you would like to take advantage of the Price Guarantee Program, which provides you with a two-week window of opportunity in which to re-price your order in the event of a correction, you must select assets with some collectible value such as 20 Francs, Double Eagles and Silver Dollars. Call Goldline at 1-877-341-2646 for further information on the Price Guarantee Program.

To receive the free information package including articles on the dollar, the economy and gold, call Goldline at 1-877-341-2646. Goldline also provides several other helpful articles. There are a number of other independent third-party source articles that you will find extremely helpful and informative. You will also receive the Client Account Agreement, a company brochure and a Coin Facts Risk Disclosure booklet. Read these carefully before you make an investment. Call Goldline at 1-877-341-2646 now to receive your free information package.