Greece ‘Going Under’ to Drive Gold Jump!

• Yes, the moment is coming when the masses will realize that fiat currencies are in trouble! The Europeans are waking up to this reality and gold is making record highs in UK Sterling and Euro. Gold is also making record highs in JPY. It is a matter of time before gold embark on a smashing run against the USD.
    
  April 29 (Bloomberg) — Gold may rally to a record as the European sovereign debt crisis escalates, with Greece “going under” and investors losing confidence in paper currencies, said David Crichton-Watt, manager of Phoenix Gold Fund Ltd.
   
  “I would be surprised if the gold price doesn’t go over $1,500 this year,” said Crichton-Watt, whose $100 million fund returned 122 percent last year. Gold, which touched a record $1,226.56 an ounce in December, may also benefit from resurgent inflation, Crichton-Watt said in a phone interview today.
   
  The Greek public-debt crisis has infected financial markets worldwide, hurting equities and boosting gold, amid rising investor concern the nation may default. Gold was benefiting from safe-haven buying as contagion risks expanded, according to a report from Edel Tully, an analyst at UBS AG. Holdings in the SPDR Gold Trust climbed to an all-time high this week.
   
  “Now we’ve got Greece going under and a lot of other countries looking likely to follow,” said Kuala Lumpur, Malaysia-based Crichton-Watt, 62. “It’s really a declining confidence in paper currencies,” Crichton-Watt said.
   
  Bullion has risen 30 percent in the past year as investors from central banks to pension funds and individuals sought protection against currency debasement and inflation after governments spent $2 trillion to salvage the global economy from the worst recession since World War II. The precious metal has posted nine straight yearly gains from 2001.
    ….
  “There’s a potential for further price gains in gold as an inability by some European countries to service debt fuels flight-to-quality sentiment,” said Chris Yoo, head of the global derivatives team at Samsung Futures Inc. in Seoul.

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