gold will trade $3,000 - $5,000 in 2012, page-158

Hoopytdog,

1) Europe doesn't want to see Greece default because of how much the country owes foreign reserve/commercial banks. If they defaulted it would have a contagion effect similiar to the states in the GFC. In the event of a default instead of the funds going into Greece it would be used to go into entities very sensitive to a Greek default. They will continue to try and print their way out of trouble no matter what. So in a nutshell it doesn't matter if the funds go into Greece or else where. The effect is dilution and debasement. Debasement is one of the main reasons gold has gone up over the last decade or so.

2) In the event of a Greek default and the fear of the contagion effect that could result from it, its fair to say the Euro would fall against the USD. So gold valued in Euros would go up in value. In respect to the AUD in that event it would fall due to the potential default effect it would have on the world economy. Gold valued in AUD would head up in value as well. (Anyone please pull me up on any of this exchange rate stuff if I got it wrong)

3) If the bailout comes this would be positive for gold. Again the bailout means more debasement etc which will push up gold.

I feel Greece this time around will accept the bail out. I also believe that we will see QE3 first half of 2012 for the states. In that event we will see gold north side of $2000USD.

Can't stress enough this is speculation and all my opinion only, not any type of financial advice.