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Germany also continues to take back gold.
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John Burns
Posted 11/23/2014 11:09 (#4195956 - in reply to #4195885)
Subject: gold and deflation

Pittsburg, Kansas

cfdr gold has been shown to also be a hood hedge in deflationary times.

During deflation cash, or "good money" is in short supply. Credit, what mostly passes for money these days, can't be had so there is a shortage of money to buy things. It is not lack of demand that causes prices of goods to fall. Many people would love to buy them. It is lack of cash or good money to do so. Gold is still cash. Gold continues to function in a deflationary cycle. Credit (what now mostly constitutes "money") doesn't.

Gold is not a bad thing to have in a deflationary cycle. It might not be the best thing, but it does not go away like credit or the value of paper promises that default.


Edited by John Burns 11/23/2014 11:12
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