Separate the deflation event from the monetary reality. German price levels fell during the global depression of 1920, even though the Reichsbank was printing like mad.
I can buy gold falling 50%, but it's a disaster scenario where gold still outperforms other asset classes, i.e. the worst case scenario. There's no way the economy recovers and gold drops over the long-run. It may dip at first due to changing perceptions (safe haven buyers flee to equities and other commodites), but inflation will be back with a vengeance.
Why Gold Is Losing Its Shine [View article]
I can buy gold falling 50%, but it's a disaster scenario where gold still outperforms other asset classes, i.e. the worst case scenario. There's no way the economy recovers and gold drops over the long-run. It may dip at first due to changing perceptions (safe haven buyers flee to equities and other commodites), but inflation will be back with a vengeance.
Eric Lemieux: Decline in Gold Price Goes Against Every Theory [View article]