Look no further to find out why gold is breaking through to the upside!

Eric Fry has another excellent discussion here. He wrote this two days ago for The Daily Reckoning. Taking his wisdom into perspective, he makes one of the strongest arguments I can think of for owning a new form of currency – purchasing gold so that you have a true currency. Physical gold truly looks like a necessity moving forward. Please read below and I encourage you to comment.

“05/10/10 Laguna Beach, California –

The leaders of the European Union huddled together over the weekend to devise a dramatic rescue plan for the euro. When they broke from their huddle they announced a $645 billion war chest (of borrowed money) with which to defend their 11-year old currency.

The massive rescue plans seems nearly certain to work…for a day or two…and maybe even for an entire week. But trying to combat debt fears with a great big pile of additional debt hardly seems like a winning formula. Rescue plans rarely rescue much of anything.

At the heart of issue lies the simple fact that most European governments are heavily indebted and are increasing their indebtedness at a catastrophic pace. After decades of dispensing services and benefits that tax revenues failed to cover, the moment of truth has finally arrived. And it is too late for austerity measures or tax hikes to restore solvency. Therefore, without some combination of bailouts and money-printing, several governments might default.

As this seemingly unthinkable possibility becomes “thinkable,” if not likely, every heavily indebted sovereign borrower in the world is starting to wonder if they might be next. This situation is very serious, very pervasive and very unlikely to be cured by any sort of “rescue plan.”

The panic of early 2009 may be gone and the “crisis mentality” resulting from the Lehman Bros. bankruptcy has vanished. But the seeds of the next crisis are germinating already. Excessive debt remains a very serious problem in almost every corner of the global economy.

AND:

These charts clearly show that no indebted country is immune from the kind of investor scrutiny that could produce a debt crisis…or a currency crisis.

AND:

Most central bankers of the world realize this fact. That’s why they all wish to support Greece – not because they care about Greece, but because they care about avoiding close scrutiny of their own finances.”

Here’s the link. Gold price predictions? Not "to the moon" yet, Alice. But strong. $2000 gold is certainly possible. Call us at Lear Capital today!