The argument that the "theft" of Cypriot depositors' funds is a precedent that will send Spanish and Italian depositors running for USDs or gold rests on the idea that the Cypriots are "just like us".
That idea wears thin when you realise that the size of the Cypriot banking system is 800% of the Cypriot GDP, and bloated with Russian funds of questionable origin.
Some may call it "theft" but I'm not surprised that the EU and IMF are unwilling to subsidise the losses of Russian criminals.
The issue for gold is how long it takes for this to be broadly understood. Judging by the subdued price action and the recovery in US equities, not very long.
