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Gold and silver both opened higher on follow through from the rally late yesterday afternoon, triggered by the surge in the stock market and the fall in the dollar.  The fact that gold has been able to go higher in the face of weak to neutral oil prices shows there is value money coming back into the market. 

In addition, the markets ability to hold around the $700 level, plus the approach of the G20 meeting this weekend is triggering some short covering.  With gold and silver both having held key support levels, it would appear they are going to try to push through the $750 level next week.  In the first hour of trading gold is up $39 and silver is up $.70, just off the highs.  The dollar is down 9 basis points at 86.85 and oil is down $.77 at $57.46 a barrel.  The Dow Industrials after a huge 911-point swing yesterday, closing up over 500 is down 120 points at 8,714.

 There are big expectations for the Group of 20 meeting this weekend.  They will be discussing the possibility of establishing currency exchange rate stability and solutions for the global financial crisis.  I would look for more coordinated interest cuts in the immediate future.  I think the dollar is too strong for the American economy.  There will probably have to be some adjustment for the dollar to move lower on a controlled basis. 

 There is excellent demand for physical gold particularly from Asia and the Middle East.  Given the aggressive rise in the dollar, prices for gold in most other parts of the world have been steady to higher and have not experienced the decline that we have seen in terms of the U.S. dollar.  I think we will see continued advances for the precious metals and it looks more and more likely that the bottom has been made.  There is also a good deal of concern that the spending of the $700 billion TARP program combined with all of the other spending that is going on, will soon begin to cause higher inflation pressures.  That should be supportive of gold.

 Today, Freddie Mac announced a $14 billion loss in the last quarter.  They are asking the U.S. government to reimburse that $14 billion loss.  You can expect much bigger losses ahead and look for Fannie Mae to join the parade of companies with their hand out.  In addition, we will soon have a bailout program put in place for the auto industry.  This is likely to amount to in excess of $50 billion.  There simply is not enough money in the world to come up with the expenditures that are being made.  If we look at the data that came in yesterday, the budget deficit was a record $237 billion.  That is an all time high and 317% higher than the October of 2007 number, reflecting expenditures related to bank re-capitalizations under the TARP program.  Tax receipts are down while expenditures are up.  The outlook for the financial solvency of the U.S. government is poor. 

 Yesterday Goldline began giving away a free article from China Business News, which is a quasi government paper.  That article expressed the Chinese government's concern about the massive deficits being run by the U.S. government.  They also literally demanded action by our government to tighten its belt, reduce spending and begin paying down the debt.  They also had a number of other demands including political demands and demands for the latest in high-tech military equipment, if we expect them to continue to fund our debt.  This is getting to be a very dangerous situation and I think everyone should read that article very carefully. 

Goldline is also giving away two articles discussing the proposals to confiscate 401(k) plans and IRA accounts and convert them into Guaranteed Retirement Accounts.  This would have significant negative consequences for many investors.  Moreover, it takes away choice and the proposals as they exist today would allow the government to confiscate as much as half of the value of your accounts on death.  This is a dramatic and dangerous approach.  Consequently, all investors should read those articles very carefully and become involved in the process to protect your savings and retirement.   Call Goldline for your free information package today, 1-800-827-4653.

 In this time of financial crisis and peril, everyone needs to own some gold for safety and purchasing power protection.  Call Goldline and ask them to assist you in getting started with gold and about their special offers that may enable you to get free coins.  Get started today.  Call Goldline at 1-800-827-4653.

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 Swiss 20 Francs, Double Eagles and Silver Dollars.  Call Goldline at 1-800-827-4653 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 the four articles on the dollar, the economy and gold call Goldline at 1-800-827-4653.  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 now to receive your free information package at 1-800-827-4653.

^{You should carefully read the client Account Agreement and the Risk Disclosure information. These explain important things you need to know before you invest in precious metals, such as: past performance does not guarantee future results. Transaction costs are generally 5% to 10% on bullion and 30% to 35% on coins. This is also referred to as the spread, or the difference between the buy price and the sell price. The market must go up enough to overcome this spread before an actual profit is achieved. All markets go up and down. Coins are a long-term, three- to five-year, preferably five- to ten-year investment, suitable for 5% to 10% of the average portfolio. Please see Goldline's Risk and Disclosure Statement for further details.}