Italy is the third largest gold holder in the world with some $150 billion held. Given they will need to sell this soon to keep the lights on I suspect gold will temporarily crash in a manner similar to the 90’s when Russia was dumping its stock to keep the lights on. Demand for consumer electronics is tied to the economy as well.
Me thinks in the near term (2 – 3 years) gold back down to around $800.
Of course I may be totally wrong about Italy as it is possible their gold will be used or has already been used to secure their debt and will never enter the market. In this case we could see gold up over $2000 within the year.
