So what are peoples opinions of what will happen to the fiat price of gold when Greece eventually defaults and has a knockon effect throughout the European banking system and to a further extent the world with the ECB and alot of other banks holding toxic Greek debt and so on.. Will it go down again like the last GFC? Or will be that many people flocking to its safety that it will go up? My guess is down but after the dust settles it will go alot higher just like what happened in the last GFC, I think alot of people will still liquidate into US dollars which will give the USD a rally and the Euro will get hammered. Your thoughts? And is anyone on the sidelines with cash waiting for this?
Please flock to the US Dollar, we will cover you with our powerful wings and save you from any danger.
Don't look now mate, but I think all the wing feathers have fallen out! - unfortunately, but inevitably, :-( OC
Two lines of thought: - People will flee to gold as a safe haven. - People will require liquidity (i.e., in 2008, post-Fukushima meltdown) and offload gold. I think both may happen but it is a matter of which force is greater and why that force is greater. I'm not sure what would happen in the short-term but I see it being long-term bullish for gold. It's also important which currency you measure gold in as it may explode in one currency but no so much in another.
