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Sunday, September 21, 2008

Gold: Short Selling by the Treasury appointed banks can not hide its shine in a Global Bailout.

You can manipulate markets only to a certain extend, now we know from the press that the world was on the doorstep to "meltdown of financial system" last week. Gold has finally decoupled from all baseless financial assets and FIAT currencies and showed a bold vote of confidence breaking out of down trend in one day gain of 85USD. Inflation in the form of extending money supply will flood the system, death clots will be taken out of veins main financial system and will allow to prevent total collapse. But while financials will be holding its domino together finding the way to unwind global derivative mess, Hard assets and Gold and Silver particularly will flourish in the Global Race for security, which is not associated any more with fallen "Rome", its currency and crippled corrupted financial system. After last week events short selling covering rally will be used by professionals to sell into strength and rise liquidity, more money will be allocated to Gold as protection in global portfolios - we are entering a new Bull Leg in the Gold market with Universal recognition of its Store of Value and Wealth in Inflationary times.

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