SENATE PASSES HEALTH CARE REFORM BILL - GOLD SOARS

The senate passed the Health Care Reform Bill this morning, and the dollar weakened and gold shot upward, gaining $8 and silver up $.15 in the first half-hour of trading. The dollar is down 14 basis points, oil is up $.22 and the Dow is up 23 points. The dollar weakened and gold rose in reaction to the passage of the Health Care Reform Bill by the Senate as investors anticipate that the cost sassociated with this bill will add tremendously to the deficits and that will then weaken the dollar further.

I heard an analyst on CNBC this morning discussing the potential for massive dollar devaluation similar to what occurred in the 1930s. He argued that the amount of debt and deficits has expanded to the point where devaluation is inevitable. He pointed out that most major countries have devalued their currencies in the past, including the U.S., and that once the currency was devalued it helped the economies to rebound and recover. That certainly was the case during the Depression. Last year I gave away an article from Forbes Magazine that discussed the fact that countries that devalued their currency first during the Great Depression came out of the depression first. The U.S. was rather late in devaluing its currency and it emerged from the depression later than other countries. However, I suspect that before you get to a situation where the government formally devalues the currency, you have to first arrive at a point where there has been so much money and debt created that inflation is spiraling out of control.

Of course, at this point we do not know what will happen with the Health Care Reform Bill. While the House and Senate have both passed a version of their dramatically different bills, they now must be reconciled in Conference Committee between the two houses. In addition, Congress voted to raise the debt ceiling to $12.4 trillion. That will only carry them through the first part of the year. Shortly after the first of the year, there will be another fight over how much to raise the debt ceiling. It needs to be moved up to around $14 trillion simply to cover the deficits that are anticipated for next year.

With regard to the precious metals, Dow Jones analyst commented, "Comex gold back above $1,100 as U.S. dollar falls … traders said the metal now looks to end the year on a higher note than thought earlier this week." Moreover, analysts on the technical side, including Francis Bray, Dow Jones Chief Technical Analyst said February gold will test $1,109 to $1,115 resistance in the near term. It may well be that gold will now stage a rally through the end of the year, but it is too early to be certain. Whether it does or not, gold and silver are both excellent buying opportunities at these levels. We have seen many of the analysts referring to them as such. Moreover, with analysts forecasting prices of anywhere between $1,250 and $1,500 for next year, the upside potential is excellent from these levels. Rob McEwan, CEO of US Gold, said he sees gold rising to $2,000 an ounce next year. His ultimate target is $5,000.

To get started with gold or to take advantage of this bargain buying opportunity, call Goldline at 1-877-341-2646. Be sure to ask them about the Price Guarantee Program, which provides you with a two-week window of opportunity to re-price your transaction in the event of a correction. Also ask for the free information package so that you can have the benefit of reading the views and forecasts of major market analysts from the big banks and brokerage firms. These banks and brokers are forecasting substantially higher gold prices, a weaker dollar and higher oil. In addition, you will receive a free American Advisor Newsletter, which has a $25 value, and you should read the article written by Philip Klapwijk, who is one of the most prominent market analysts in the precious metal sector. Call Goldline at 1-877-341-2646 now for the free information package.

Investors should ask Goldline to explain the features, benefits and cost structure of the various gold and silver investments that are available. 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, Swiss 20 Francs, 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 on gold investing call Goldline at 1-877-341-2646. 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 gold investment package.