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To: Little Joe who wrote (132022)	9/28/2008 10:46:12 PM
From: Rocket Red	Read Replies (3) \| Respond to of 312289

Gold will fall even in deflation in this 20th century

To: Little Joe who wrote (132022)	9/29/2008 3:31:10 AM
From: E. Charters	1 Recommendation Respond to of 312289

The reason for gold's upward movement in deflationary periods that is gold wasiswillbe money, so it wasiswillbe in demand. It could be said it 'commanded' (would buy lots of) scarce currency during the depression, so in turn was considered scarcer than paper debt. ... A deflation implies a short supply of money or debt, and an oversupply of commodities. Gold however is money so it does not act as a commodity in this instance. It turns tot he money side of the equation and rises in value. Also in a schizoid fashion it represents hidden inflation during inflationary times during period of wage and price control. Ironically also, depressions are great periods of growth as labour is cheap, allowing industry to prosper. America's greatest era of industrial growth, invention and engineering development was during the great depression. It was also one of Canada's greatest periods of prospection and mine development. Gold is not a mere commodity, but a monodity. It rises ironically also in inflationary times as it cannot inflate itself, (you can't print gold..) so increases in value in monetary exchange terms. Gold has a more or less constant value, but a varying price. It can be said to accurately reflect inflation and deflation of currency, but also to act as money itself against true commodities. It value as a monodity is that if is relatively fungible, permanent, hard to trace, easy to exchange, compact/scarce, workable, alloyable, useful, and very hard to counterfeit. People confuse true money with paper debt. Gold is true money in that it is universally exchangeable and does not or should not suffer the erosion of value that representations of debt may when economies fail. Empires may rise and fall, and paper will burn, but gold is forever. What people think is a shakiness to gold's value is merely reflection of the temporal forces of trade exercised by monopolistic banks and trade empires which seek to control matters of exchange and debt. We can see that historically these empires and their machinations come to ill eventually and their economies wither and die. But there are constants within and without these flows, and among them are gold and barter. Gold always arises out of the ashes because people can easily place a common faith in it, whilst the outcome of government's attempts to balance books is always assailed by error, miscreance, and inflationary erosion. Throughout time men of all stripes could agree on an ounce of gold for a week's labour regardless of what governments declared. This will probably go on for some time until a more durable and workable symbol that will stand the test of time and all apocalypse shall come along. EC<:-}