A global depression would tend to reduce interest in gold. Depression usually means deflation, or at least no inflation. Gold is typically used as an inflation hedge. (Well I suppose if it went beyond global depression, to near collapse of civilization across the world, gold might hold more interest, but if that's what people are predicting, then demand for survival equipment would zoom up a lot more than gold)
The deficits under in the last eight years combined with all the spending from the stimulus and the bailout bills (both those pushed by Bush when he was president, and now those pushed by Obama), make people think there may be a lot of inflation down the line (even if the current recession, probably means its not a threat for 2009, and maybe not 2010), driving the interest in gold.
In that case, it is not beyond imagination that governments would move against the hoarding/use of gold in some fashion
Not beyond the realm of imagination at all, but I think its very unlikely. Particularly if your talking about a real massive effort to grab the gold, rather than just some law against "hording gold" with little in the way of actual enforcement. |
