bowman711

On Precious Metals and the Euro

I would say that gold should be viewed as a store of value. Whether it is faced with inflation or deflation, eventually - sooner or later - gold should find its equilibrium in relation to the rest of the economy. Thus, if gold will buy one 'good suit' at equilibrium it will buy one 'good suit' whether it is priced at $200 (deflation) or $2,000 (inflation) when equilibrium is reached sgsin after a significant change. The value of gold may vary greatly during times of change, but eventually it should find that 'good suit' equilibrium level again.