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To: Bert who wrote (125468)	9/25/2001 1:23:23 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 436258

i refer you to Dan Ascani's study of deflationary periods back to the 15th century...he concluded that gold's purchasing power tends to increase sharply in general deflationary conditions. of course the study is hampered a bit by the periods during which the price was fixed, but generally it shows that while gold tends to show no strong nominal price increases in deflations, it still rises vis-a-vis all other stuff merely by remaining stable. that means of course that gold shares are a better investment than physical gold during a deflation - to wit, HM's stock price increased 10-fold from 1929 to 1935, while the gold price remained fixed (with only a single adjustment effected by FDR after the confiscation).