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Gold/Mining/Energy : Gold Price Monitor
GDXJ 145.00+2.0%Jan 23 4:00 PM EST
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To: goldsheet who wrote (91051)11/10/2002 11:30:37 PM
From: E. Charters  Read Replies (1) of 116914
 
Prechter is wrong. Even in Deflation the price of gold rises. It also rises in the face of inflation. In part this was because of the pressure of the gold standard in the 1920's. 




year  infltn  fed      $97     gold    $2001



              discnt   oil              gold



 



1916   7.44   4.0     16.33     20.67  336.71



1917  17.69   4.0     19.72     20.67  286.07



1918  17.65   4.25    21.31     20.67  243.28







(Gold rises in 2001 dollars during inflation



of 1916 to 1918 but remains fixed on gold 

standard at contemporary prices.)







1919  15.00   5.92    18.84     20.67  211.45



1920  15.94   6.75    24.84     20.67  182.52



1921 -10.83   6.5     15.67     20.67  204.63



1922  -6.54   5.0     15.57     20.67  218.89







(Gold rises in 2001 dollars during past two



years 1921 to 1922 of deflation.)







1923   2.00   4.5     12.73     20.67  214.55



1924   0.00   4.25    13.56     20.67  214.55



1925   2.94   4.15    15.54     20.67  208.56



1926   0.48   4.0     17.22     20.67  207.52



1927  -1.42   3.75    12.14     20.67  210.42



1928  -1.44   4.0     11.07     20.67  213.52



1929   0.00   4.75    12.02     20.67  213.52



1930  -2.44   4.25    11.55     20.67  218.90



1931  -9.00   3.5      6.92     20.67  240.60



1932 -10.44   3.5     10.33     20.67  268.50



1933  -4.91   3.5      8.38     32.32  441.81







(Gold rises during deflation of 1929 to 1933 in



true dollars and 2001 dollars.)







1934   3.23   3.25    12.11     35.00  463.40



1935   2.50   2.5     11.46     35.00  452.20



1936   1.22   2.0     12.75     35.00  446.60



1937   3.61   1.6     13.32     35.00  430.85



1938  -1.74   1.5     13.00     35.00  438.55







(Gold rises during inflation in 2001 dollars 



but remains fixed at contemporary dollars.)


As you can see during the deflationary period from 1929 to 1935, gold rose in true dollars AND in discounted dollars.

This phenomenon is strange, as gold rises during inflationary periods in discounted dollars, and sometimes, if not fixed, in true dollars as well. This is caused by gold buying dollars and commanding lots of them, as it is a scarce monetary resource.

EC<:-}
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