Gold looking very good with the Cyprus crisis. Ive taken the key element of the previous post.
Cyprus financial crisis
Extract
"Since Cyprus is such a small economy, why does this matter to the rest of the world?
There are a number of reasons.
Firstly, overseas banks, particularly in Russia, are believed to have a significant exposure to Cypriot banks. A collapse of the banking sector in Cyprus could cause bank losses offshore, with ripple effects through the wider global financial system.
Secondly, if Cyprus refuses to accept the terms set by the EU and defaults on its debt, it may have to leave the eurozone. There is concern this could spark a domino effect among other, larger heavily indebted nations such as Greece, Italy, Ireland, Portugal and Spain, ultimately forcing the break-up of the eurozone with unpredictable consequences.
Thirdly, a collapse of Cypriot banks and a sovereign default would inevitably flow on to its close neighbour and ally Greece, and may mean that Greece requires a further bailout."
