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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (28284)	2/15/1999 10:11:00 PM
From: Mark Bartlett	Respond to of 116779

Ron, <<Now we might be getting somewhere. You make a very good argument, I believe, that money which is a proxy backed by another proxy, namely gold, would be sounder in times of deflation. >> That essentially sums it up. Paper backed by "confidence" means little when that confidence disappears - and historically it always has at some point. <<And when prices go down, it is usually because people are afraid to spend, n'est pas? There are few spending consumers, retailers lower prices to clear inventory, even at a loss.>> In times of deflation, prices do not (much to the surprise of many) necessarily go down. Deflation always negatively affects employment and output. The result ... less employed people (with less money) chasing goods that are priced as if there was no problems ..... continuing decreased demand .... less currency available .... less buying power (value). In this scenario, people look for somewhere to put there $$ to protect their (the dollars) "condfidence". The assumption that I see you and others make, is there will always be another fiat currency (or derivative) to jump to .... that may not be the case. MB