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To: skinowski who wrote (63480)	1/11/2003 10:35:25 AM
From: re3	Respond to of 209892

re exchange traded gold shares...in a deflation type scenario, perhaps the price of gold is steady but production costs, i.e. labour, would decline, so that profits would increase...

To: skinowski who wrote (63480)	1/11/2003 2:10:57 PM
From: Moominoid	Read Replies (2) \| Respond to 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.