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Politics : Welcome to Slider's Dugout

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From: Fun-da-Mental#111/29/2006 8:13:58 AM
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Actually there's one more point I want to make about gold and inflation. Everybody knows gold is the barometer of inflation, right? It's a cliche. So why do gold bugs expect the gold price to rise when we're heading into recession? A recession is the opposite of inflation, even if governments do expand the money supply to try to compensate.

What I've seen by looking at historical data right back to the Great Depression is that gold does not rise during periods of economic contraction, it rises immediately afterwards when things start getting better.

Fun-da-Mental
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