In May of 2012, when gold cost more than 1,600 dollars per ounce, Bloomberg reported how Greece leaving the Eurozone would look based on scenarios of 21 economists, analysts, and academics. Today, three years later, it feels like the markets are handling a potential Grexit much more relaxed and it looks like gold is pricing in a positive ending.

Despite all that, the possibility of Greece exiting the Eurozone is still very real and then there is still the question of what that would do to countries like Portugal or Spain.

How Gold Would Profit From Grexit

Julian Jessop of independent research firm Capital Economics expects gold to profit from a renewed demand for a safe haven if Greece would leave the Eurozone. Jessop, head of commodities research at the research firm, expects gold to end the year at around 1,400 dollars per ounce.

He adds to that, however, that if the scenario of a Greek departure from the Eurozone becomes a reality, the demand for a safe haven will become so enormous that gold could easily rise to 2,000 dollars per ounce.

During the recent banking crisis in Cyprus, the gold price was undermined because of rumors that the central bank was forced to sell off its reserves to pay off its debt. That was not the case, however, and Jessop believes that this time gold could profit.

Recently Germany and Switzerland repatriated their overseas gold (mainly from the US), for example, which shows that the people are very attached to the precious metal. In the unlikely even of the Greek authorities being forced to sell their gold, they will surely find buyers that are willing to pay higher prices.