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To: Zardoz who wrote (31830)4/16/1999 9:29:00 AM
From: Enigma  Respond to of 117013
 
"Gold does best in deflation" I'm not sure you're right about this. Certainly it was true of gold (for a while) and then HM during the depression - but the rise in gold in the late 70s was surely in an era of chronic inflation? We (in north america)have known disinflation since the 30s but not widespread deflation as measured by the CPI. It seems that gold does well during currency deflation - that is why we have a gold bull market in countries where the currency is weak - and this is important and not to be ignored. dd