One of the major news events that may affect the financial markets, besides the
results from Super Tuesday, is the ramifications in case Greece will default on
its debt. Lets examine, how, if at all, such a scenario will affect the price of
gold. Despite the many reports coming from Europe, the events in the U.S. still
affect the bullion market more than the events in Europe: case in point, the
testimony of Bernanke from last week dragged gold and silver prices and resulted
in the worst performing week for bullion prices this year so far. Nevertheless,
yesterdays sharp decline of gold and silver prices was probably stemmed
primarily from the speculation around the Greek default and the EU GDP
contraction in the Q4 2011. The speculation of Greece defaulting on its debt may
reach another climax on Thursday, March 8th in this ongoing saga as private
creditors will need to respond to an offer that will effectively have them write
off nearly 70% of the face value of their Greek bonds in return for new issued
debt. Currently, Greek government bonds are traded at less than 20 cents in the
Euro. Will a scenario in which Greece defaults on
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