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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?


To: NOW who wrote (10834)7/18/2008 1:19:41 PM
From: RonMerks  Read Replies (1) | Respond to of 50101
 
Can anyone 'show me' where Gold did well in a deflation?

My wife had surgery this week (she's doing fine) and I've spent my days at the hospital this week- so I'm just getting caught up here. What a week this was. We almost got Dow 10,800-and we did break XLF 20.

WillieT's post along with Sliders chart on gold during Japans deflation kind of shook up my thoughts on gold and deflation.

Can someone give me an example- in modern economic history (not the 1500's) where gold has done well during a deflation? I can only think of Japans in the 1990's and the Great Depression of the 1930s. And WillieT just pointed out that the gold price was fixed in the 30's- so gold stocks performance had nothing to do with the gold price. I'm almost thinking that people are getting the hyperinflation of Weimar Germany mixed up with deflation.

Can anyone post an example chart where gold did well during a deflation?

Ron