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karenbcz
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Will the Greek Bailout Make Gold, Silver Rise or Fall?

- Julian D. W. Phillips - Gold Forecaster

RE: "Default; price will at first rise even faster; as panic starts to set in. The US dollar is being seen as less of a safe haven than in past. If the crisis then actually spreads and stocks fall, THEN gold will plummet. Whaddo I know, SW? Im just thinking to beat inflation! "
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I think he got that backwards ... a little bit. As European currencies crash, panic starts to set in. What currency will they rush to? The US dollar!! As always! The USD$ will be seen as THE safe haven, subsequently causing the USD$ to rally, and pushing Gold down.
Here's the pattern: USD$ rallies = US stocks down, Gold down. HOWEVER, it's certainly possible that if we entered a phase of HYPERinflation, as people see the purchasing power of their USD$s diminish, those USD$s are inevitably dumped, as people accumulate Gold, thus causing a huge rally in the metals ("Bubble" scenario or "mania", i.e. AU@$5K and AG@$200).
OR ... here's another crazy scenario ... Euro currencies collapse, the USD$ also weakens and the US stock market becomes the safe haven. The prices of US stocks and commodities (i.e., OIL) HYPERinflate, and of course, Gold follows.

Commented 4439 days ago

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Beginning of the headline : Some investors may feel that the Eurozone debt crisis has been resolved by the bailout from the other E.U.members.Whether it has or has not, is irrelevant to the price of gold, or is it? There are still hurdles in the way, such as the acceptance by private Greek Bondholders of the 53% haircut and low interest rates they will get until 2015... Read More

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