If it looks like Ireland will default, we'll enter another deflationary environment--this hurts the commodity bubbles of which gold is a part. You have to be ready to bail in that case.
If the world economy goes into a liquidity crisis (which it can), rather than more inflation from printing, then the dollar gets strong because everyone needs cash to pay their debts.
They sell gold, silver and stocks to get cash to pay their debts, and this acts as a pin applied to these commodity bubbles.
Owning physical gold is always nice even if you paid too much for it if the deflation gets bad enough. Just something people ought to be on the lookout for. I'm still knee deep in silver and gold ETFs.
BA mathematics / MS engineering management
