STRONG DOLLAR AFFECTS COMMODITIES

The dollar rallied strongly this morning in reaction to a weaker euro and that caused the precious metals and other commodities to pull back in early trading. Gold is down $12 and silver is down $.15, while the dollar is up 41 basis points. Oil is down $.59 and the equities are also lower with the Dow down 67 points.

Some of the factors influencing both the dollar and gold are concerns about China's effort to curb its growth along with a rather tame U.S. inflation report. The CPI report showed a gain of only 0.1% in December, down from it's 0.4% advance in November. This is the lowest CPI rate since July and is slightly below expectations, which were for a .2% rise.

Over the last couple of weeks volatility in the precious metals and other commodities has been rather high. This results from fairly thin trading conditions. However, that is the reason that there is so much movement back and forth, in other words volatility. While it is all together possible for the markets to have a correction of some significance, the market remains very bullish and the down side according to most analysts remains limited. Just in the last few days Goldman Sachs raised its forecast for gold this year to $1,365. The survey by Dow Jones Wire Service yesterday of 41 analysts at investment banks, trading houses, and research organizations showed their highest forecast for the year on average at $1,400. They forecast silver to reach an average high of $22. Goldman Sachs sees gold above $1,275 in the next five months.

These are excellent forecasts and when there are corrections along the way, they should be viewed as buying opportunities, which provide the opportunity to increase potential profit. Those who know this about corrections and would like to have some comfort may wish to take advantage of Goldline's Price Guarantee Program, which provides a 10-day window of opportunity to re-price your transaction in the event of a further correction. This has helped many investors to take positions and to be immune from some of the corrective process. Call Goldline at 1-877-341-2646 to find out the details.

Another factor influencing the dollar and the metals today is investor apprehension that European assets will lose value as Greece struggles to cut its budget deficit and get its financial house in order. The problems in Greece are severe and the fact that their sovereign credit worthiness is being questioned is an important consideration for Europe as a whole. However, while the dollar is in a temporary rebound mode, the long-term outlook for the dollar is poor. A study done by Rogoff and Reinhart of 44 countries that have experienced some form of crisis, demonstrates that over a period of 200 years the dollar is not likely to be immune from problems resulting from an immense build up of debt. The debt in this country is likely to reach 90% of GDP this year according to the study. Within the next four years, the debt to GDP ratio will be 108%. It seems highly unlikely that the dollar can perform well in a situation where budget deficits and debt are exploding in that manner.

These are among the reasons why so many of these prominent analysts are forecasting gold to make new record highs this year. Do not miss out on this opportunity to acquire gold and silver assets on the dip. Call Goldline at 1-877-341-2646. Be sure you ask them for the free information package, which contains quotes from some of these major bank analysts, traders and research organizations. Goldline will also provide you with a free DVD and with a copy of the American Advisor Newsletter, a $25 value for free. Call Goldline now to receive the materials at 1-877-341-2646.

Investors should 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 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 a decision. Call Goldline at 1-877-341-2646 now to receive your free gold investors package.

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This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. You should review Goldline's Account and Storage Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline's spread, which is the difference between the price we sell our products and the price we buy them back, generally ranges between 5% to 20% on our most common bullion products and 30% to 35% on all other products including our popular European francs, proof coins, silver dollars and half-dollars, and graded coins. The market must go up enough to overcome this spread before an actual profit is achieved.  Precious metals and rare coins can increase or decrease in value.
Past performance does not guarantee future results. Coins are a long-term, three- to five-year, preferably five- to ten-year investment. We believe precious metals are suitable for 5% to 20% of the average investment portfolio though others may recommend a different percentage. To receive free information package on gold and precious metals investing, call Goldline at 1-877-341-2646.
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