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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: westpacific who wrote (27713)	3/3/2005 12:57:05 PM
From: Square_Dealings	Read Replies (2) \| Respond to of 110194

<In deflation even gold gets creamed.> Crude oil is soaring m

To: westpacific who wrote (27713)	3/3/2005 3:26:44 PM
From: NOW	Respond to of 110194

no evidence for that

To: westpacific who wrote (27713)	3/3/2005 9:09:40 PM
From: regli	Read Replies (3) \| Respond to of 110194

"Safe Haven - yes, but maybe not. In deflation even gold gets creamed." Check the behavior of Homestake Mining during the Great Depression; it went from $40 in 1926 to $544 in 1935. Not exactly getting creamed! Now you could say that the U.S. was still on a gold standard and that might have contributed to Homestake’s success as it had a ready buyer in the government. However, I believe the fact that gold has no counter party, will likely make it much more of safe heaven. I doubt that the dollar will hold up during deflation in the U.S. With external liabilities so high it is hard to imagine. Therefore, where do you invest your money when you seek purchasing power protection, Free trading gold would very likely benefit even more than under a gold standard.