johnbee

In This Global Depression, Gold Is a Safe Haven

The price of gold relates more to psychological factors than its actual use.
These factors are subjective and irrational based largely on fear and speculation. This is not to say that the price of gold will not go up despite deflation, or that it may go down. Noboday knows other than if enough people buy it then a rise in price will be self fulfilling. In inflation it will hold its own against currencies but then so will lots of other alternatives
in commodities and stocks. As a word of warning most States in trouble are selling their gold and foreign currency reserves to support their own economies. There is not the remotest possibility that countries will return to the Gold Standard so what worth does it have for States to hold other than as a speculation?