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Strategies & Market Trends : Coming Financial Collapse Moderated -- Ignore unavailable to you. Want to Upgrade?

To: 200ma who wrote (183)	6/19/2001 4:42:43 PM
From: pater tenebrarum	Respond to of 974

well, we can only look at silver prices in connection with this, as gold prices were fixed during the last deflation. silver began a huge rally in the early 30's, presumably as a reaction to the authorities attempt to reflate. a long term study of gold during deflationary periods by Ascani (going back all the way to the 16th century) shows that gold's purchasing power tends to increase dramatically during periods of deflation (its price at the very least remains stable). that is good news for mining stocks, as their input costs fall, while their product's purchasing power rises. in the '29 - '35 period, HM's stock price increased ten-fold due to this effect.