gold's rise may be short lived, page-7

The big fat elephant which remains in the room is that there is no way for the United States and most of the Eurozone to escape the bottomless pit of debt which binds their currencies.

The only way for them to get out is through currency reform, and the question is not if but when currency reform is to occur.

Despite central bankers controlling the spot price of gold on paper the short fall remains in the physical delivery of gold to meet these contracts.

If everyone with CFD's demanded the physical delivery of their gold the true flaws in this failed market experiment will show.

Having 50x more gold sold on paper than is actually physically owned by these banks is criminal as how the hell can you sell something you dont even own?

Additionally if the USD was to be truly appreciated, say bye bye to the sharemarket, global markets would cease to exist overnight. As the US federal reserve continues to print endless amounts of money all of which remains unaccountable this short lived versade of bullish markets will soon come to an end and the bears will be comming out.

More and more banks are closing across the United States and the true debt levels are starting to show as more states will be declaring bankruptcy in the months to come.

The Eurozone is not recovering, they are looking for more and more handouts to keep afloat.

The mighty beast china is slowing down in its growth, seriously how could anyone expect ever lasting growth? There comes a time where everything peaks and sadly China is starting to reach that. They are developing at too rapid a rate and it is unsustainable, with 1% of the country which owns 95% of the wealth, the wealth gap is just far too great. As you can see from the vast amount of "ghost cities" which are being constructed in order to maintain that growth rate.

At the end of the day physical asset will be something most saavy investors should be considering in the grand scheme of things, as we are living in some of the most volatile economic times the current generation will face.

Gold and Silver will continue to rise as it has been trending, and when the day comes that the COMEX is exposed for the shambles it is in physical assets will prevail and you can bet your boots we'll be off to the races.

As always DYOR and this is merely an opinionated piece.