Greek bonds are expected to settle at a 30% loss forcing bondholders to take a “haircut”. This will create volatility in the gold market as it challenges the currency market. Gold is 100% liquid and has no liability of man tied to it. The ratings agencies are pounding the Eurobanks and countries. Spain, Italy, and Portugal will demand the same favorable terms and those banks who own the bonds will immediately become illiquid. The central banks will attempt to re-liquify those banks with additional quantitative easing.
Once again as history shows us, gold is heading towards a monetary system to replace the current fiat system. Producing gold companies will act as utilities as they pay dividends from the majority of its profits to shareholders. History repeatedly shows that good money, honest money, forces out bad money. Between now and 2015 gold will return to the full valuation as the de facto reserve currency for trade settlement. In my opinion, $4,500 per ounce is the minimum level to balance the current economic conditions. $40,000 is worst case. Who is this guy writing this blog?
I expect dramatic volatility ahead as the end of the current fiat monetary system once again gives way to a righteous system based on a standard of exchange that cannot be tampered with. The current house of cards will not be able to withstand a major earthquake in the economic arena. Absolute trust in Our Heavenly Father will be required to weather this transition.