RUSSIA AGAIN CALLS FOR A NEW CURRENCY

Gold and silver are up nicely this morning, with gold recovering over $8 while silver is up $.20. Gold and silver are benefiting from a weaker dollar. The dollar fell 52 basis points to 80.62 as Russian President Medvedev again called for a new global reserve currency at today's meeting of the BRIC's nations. That directly contradicted statements at the G20 meeting by his Finance Minister. Clearly, Russia has been reducing its dollar holdings and moving to gold and euros. Other countries are doing the same. With the BRIC's nations again formally calling for a new global reserve currency, the handwriting is on the wall for the dollar.

Clearly, the dollar will lose stature as the only reserve currency. As that happens, China's suggestion that the U.S. will have to begin borrowing money in Chinese yuan may come to fruition. If your currency is not the reserve currency of the world, you cannot borrow in your own money. This will dramatically increase the cost of borrowing money for our government and for the private sector as well. It will also set up for a massive increase in inflation. These are the kinds of developments that can lead to a hyperinflation. These are not issues that can be overlooked.

As gold rose on the weaker dollar so did oil, with oil rising to a high of $72.77 a barrel early this morning. JP Morgan said, "We are still bullish gold through to year-end, but a pull back towards $910 - $925 might be just the "pause" that refreshes."

On the economic front, industrial production fell 1.1% in May and output fell a revised 0.7% in April. Capacity utilization fell to 65%. This is extraordinary. HSBC Bank said the dollar's reserve currency status would remain a hot issue, even though there at the moment are no reasonable alternatives to the dollar. However, over the longer term there will be other alternatives including a new dollar that is linked to gold, similar to what was experienced under the Bretton Woods Agreement. This seems to be the most logical development that will occur. However, in order to accomplish that, the U.S. government is going to have to post its gold reserves as collateral. This in and of itself would be a shocking development, with significant consequences. It would force the U.S. government to stop running deficits and to reduce its national debt. I think this could only be accomplished in the context of formal dollar devaluation.

Further, on the economic front U.S. retail sales fell 4.5% for the first two weeks of June. The economy remains weak and will require further stimulus by the Federal government and the Fed. Once again these are negative factors for the dollar as they will substantially increase the deficits and the debt and further expose the dollar to decline.

Given all of these factors, many view gold as an excellent bargain buying opportunity. Call Goldline at 1-877-341-2646 to get in on this market while prices remain at favorable levels. While the correction may continue for a while longer, perhaps another couple of months and could see the metals probing lower levels as I stated yesterday, the opportunity to acquire gold at a really excellent price is certainly at hand today. As Larry Jeddeloh said, gold is a bargain-buying opportunity between $910 and $950. For assistance getting started, call Goldline at 1-877-341-2646. Ask them to explain the Price Guarantee Program, which provides you a two-week window of opportunity to re-price your order in the event of a correction. Ask them also to provide you with information on the various gold and silver products that are available to you.

You certainly want to ask for the free information package, which contains articles discussing the calls for a new global reserve currency, the articles discussing the potential for formal devaluation of the dollar and articles quoting major bank and brokerage firm analyst forecasts for precious metals over the coming years. All of this is very helpful information. Call Goldline at 1-877-341-2646 for the free information package.

Ask Goldline to explain the features, benefits and cost structure of the various gold and silver products that are available to you. Select those that best meet your own personal and individual needs and objectives. Those looking for low transaction costs may wish to consider bullion products such as American Eagles, Swiss 20 Francs, Krugerrands, Canadian Maple Leafs, Silver Bags or Silver Bars. However, the Price Guarantee Program is not available with these products.

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 a purchase. Call Goldline at 1-877-341-2646 now to receive your free information package.