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To: NOW who wrote (78233)	8/1/2003 7:18:15 PM
From: patron_anejo_por_favor	Read Replies (2) \| Respond to of 209892

<sigh> Guess we're gonna have to revisit this argument, for the thousandth time. Gold does well in deflation simply because all other assets do worse. Stocks? DOWN! Bonds? (DOWN, except for treasuries, maybe, due to higher default risks...spreads should widen in a truly deflationary period). Real estate? WAAAAAY down, especially with the leverage now being applied. So what else is left? What asset class represents an obligation from NO ONE? There is only one, and it rhymes with.....SOLD!<G> ONE caveat...typically "cash" should do well also...if by "cash" you mean actual, physical currency. Most people aren't holding that right now, and if they decide they want to, short the banks in SOIZE, 'cause a run on the banks would ensue. Money markets are not "cash" BTW, they'll get whacked like all the rest if we get extended deflation.