WEAKER DOLLAR ENABLES GOLD TO MOVE HIGHER

Gold is up $14.50 in early trading this morning, recovering more than half of yesterday's dip. Silver is up $.08 and looking quite strong to the upside. Both metals are off their overnight highs, but still looking solid. The dollar continues to weaken, down 86 basis points at 81.41, even though the Bank of England lowered its interest rates to 1.5% this morning. That is the lowest rate that the Bank of England has ever had in its entire history dating back to about 1694. That is indicative of the magnitude of the problems that exist in the global economy. The Bank of England will continue lowering rates until they are at or near 0% as is the Federal Reserve. Oil is down $.48 at $42.14 a barrel on continuing economic woes. The equity market is also lower with the Dow down 101 points at 8,668.

The focus is returning to dollar weakness. A weaker dollar enables gold to move higher by definition. Moreover, people are looking at the deficits here in the U.S. and wondering how on earth they could be financed. I have said many times that I do not think that debt of the magnitude we have today can be financed. It can only be monetized. At some point it must be devalued. That means our currency must be devalued.

With the Obama Administration inheriting a $1.2 trillion deficit and needing to spend another half a trillion at least this year in order to try to stimulate the economy, the government will be looking at trying to finance $2 trillion in new debt. Many are saying this is an impossibility. Remember, other countries are engaging in the same kind of policies that we are and they will not be able to finance their debt either. This situation is referred to as "beggar – thy – neighbor policies" or "competitive currency devaluations." This is precisely the kind of massive problem that I have warned about for years.

Over the past two days we have had index rebalancing that has had an impact on the market. Analysts are telling Dow Jones Wire Service this morning that the majority of that rebalancing may have already been concluded. If it is, then gold will probably push back into a test of overhead resistance in the $870 range. If not, we may see some further pressure on gold. However, so far the $850 support level seems to be pretty solid.

Given the magnitude of the economic crisis, I think central banks will be working aggressively to reduce their dollar reserves and increase their gold reserves. This should provide further support for gold. Moreover, the continuing problems geopolitically with the Middle East, Pakistan, Afghanistan, and other countries should continue to keep the demand for gold strong. As investors begin to lose confidence in the dollar, they will be looking at gold. Gold is the only safe choice other than dollars. Given the way the dollar is trading lately and the fact that it has probably topped out, the dollar will not be much of a choice.

Many investors are considering the opportunity that is presented by gold today. Yesterday, I recommended that investors acquire gold because we never know where the bottom. That has proven to be a successful strategy. Moreover, I also recommended that investors consider utilizing Goldline's Price Guarantee Program. With that program if the market should correct within two weeks of your transaction, you can ask for a lower price and get more gold for your money. That is a valuable tool that is used by many of Goldline's clients. To learn more about these opportunities and to get the free information package, which contains an excellent article from Forbes.com taking about the dollar devaluing, comments from Merrill Lynch on "beggar – thy – neighbor" policies and most importantly a quote from Willem Buiter, former Bank of England Policy Maker, who is warning of a massive collapse in the dollar, you should call Goldline at 1-877-341-2646. We also have a quote from Peter Hambro, the head of the largest gold mining operation in Russia, who says gold could be somewhere between $1,000 and $2,000 an ounce this year. You should read these quotes along with quotes from Citibank who likewise says gold could possibly reach $2,000 this year. To receive the free article package and the other free information, call Goldline at 1-877-341-2646.

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. 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 Swiss 20 Francs, Double Eagles and Silver Dollars. Call Goldline at 1-877-341-2646 for further information on the Price Guarantee Program and how you may be able to receive free coins.

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.