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Strategies & Market Trends : Classic TA Workplace

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To: skinowski who wrote (63480)1/11/2003 2:10:57 PM
From: Moominoid  Read Replies (2) of 209892
 
In a moderate deflation bonds would seem to be the thing to hold. The price of gold should fall like everything else. In a total economic collapse gold's price has a floor based on its cost of production while other assets value is based on their productiveness. There is the overhang of Central Bank gold like there would be a big overhang of property in a massive depression (property also has a cost of production but the land value can fall very low). But if there was even a moderate switch to using gold as money that would be absorbed. So in that circumstance gold may be a good idea.
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