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Gold was up $3.40 in early trading showing a nice performance for the week.  It has held solidly above the $730 level and silver has bounced back, above $10, both showing solid performances given the collapse in the equity market over the past two days.  The dollar is down 20 basis points at 85.70, helping gold to move upward as is oil, which is up $.65 at $61.41 a barrel.  Equities have bounced back with the Dow regaining 152 points in early trading.

The unemployment data was dismissal.   The country lost over 240,000 jobs last month and the previous months losses were revised upward to over 200,000, bringing the total for two months to nearly one-half a million jobs lost.  That is on the brink of catastrophic.  Moreover, with unemployment reaching 6.5% most analysts believe we will see unemployment of 8% sometime early next year. 

When we look at the various efforts to bailout the banking system and get the economy back on a solid footing, the results have been poor.  It was announced yesterday that the Federal Reserve has increased its net portfolio holdings of commercial paper to $243 billion.  That was an increase of $100 billion from the week before.  Moreover, they provided $85.1 billion through the Boston Fed for a money market mutual fund liquidity facility.  We now have the automobile manufactures indicating if they do not get a bridge loan of $25 billion, they will not be able to avoid bankruptcy.  We have to question how many other major business sectors are in similar condition. 

The solution for all of this according to the Chamber of Congress, the Business Roundtable, the Republicans and the Democrats, which includes pretty much everybody but the consumer who seems to have no voice, is that we need a massive infrastructure rebuilding program to stimulate the economy.  The solution for deflationary pressures, which we are seeing now, has always been inflating.  The government will spend massive amounts of money it does not have to try to stimulate the economy.  There is always a question as to whether it will work.  There is also a substantial question as to the extent of the inflationary impact of that spending.  Make no doubt about it; even during the New Deal spending of the 1930's it generated inflation pressures.  This is why you need to protect your purchasing power with gold.

When you look at the tremendous drop that we've seen in the equity market, gold looks excellent by comparison.  The losses in the precious metals markets have been modest in comparison to other commodities and to equities.  Many equities have lost more than 80% of their overall peak to trough values.  Many mutual funds have taken devastating losses.  In comparison, we see gold above $730 an ounce.  It really looks quite good. 

Looking at the European markets where we saw massive interest rate cuts yesterday, the situation is deteriorating even more quickly than in the U.S.  Third world and developing countries are suffering more than Europe.  Consequently, we have a global crisis.  Goldman Sachs said today that the Fed will cut interest rates another 50 basis points, down to one-half of one percent in December.  We will probably see another 50% basis cut by the ECB also.  These interest rate cuts bringing interest rates down to zero, decreases the purchasing power of interest bearing instruments.  They are going to yield substantially less than the rate of inflation. 

This generates demand for gold.  That should help gold as we move forward over the next few months.  This is, according to many analysts, a great opportunity to acquire gold at bargain basement prices.  You can see we will have inflation down the road and you will need gold.  You should acquire gold now while the gold is bargain priced.  Call Goldline today to obtain some assistance in acquiring gold assets for your portfolio.  Ask about Goldline's Price Guarantee Program, which provides a two-week window of opportunity to re-price your order in the event of a correction giving you more gold for your money.  Also ask Goldline about special offers that may enable you to get free gold coins in conjunction with a purchase.  Call Goldline at 1-800-827-4653.

Goldline also has a special offer for free information.  Goldline is giving away the excellent article package, which will be very helpful and informative.  Goldline is providing a free copy of the American Advisor Newsletters, a $25 value.  You also have a choice of a free DVD or a free CD on investing that you will find extremely helpful.  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.}