Silver and Gold in a depression/Delation

[simon13]

Inflation is pretty easy to think about and I've sort of wrapped my head around deflation.

 

Were the economy to slip into a depression, how would silver and gold preform?

[HighlandTiger]

Inflation is pretty easy to think about and I've sort of wrapped my head around deflation.

 

Were the economy to slip into a depression, how would silver and gold preform?

 

This might help

 

http://archive.lewrockwell.com/north/north734.html

[simon13]

Really enjoyed the link,  I'm going to read a few more of Gary North's articles.

[Stretch]

This might help

http://archive.lewrockwell.com/north/north734.html

It's not helped me. Gary's saying that gold is a hedge against inflation and deflation hmmm

[Stretch]

Inflation is pretty easy to think about and I've sort of wrapped my head around deflation.

Were the economy to slip into a depression, how would silver and gold preform?

This is exactly what I've been worrying about recently as plenty of signs of deflation are appearing in the economy and this could reduce my stacks value.

There's also the gigantic deflationary bust scenario where folks are reduced to poverty and forced to sell their stacks for what they can get and then PM's hyperinflate some time later.

[HelpingHands]

My thought are: How long would deflation last, what measures would be taken to stop deflation and what would happen after it?

QE in it's current form is deflationary as the cash does not move directly into the economy and the national debt is increased. So when will the central banks alter their strategies?

Their last option may be to use QE to refund income tax. I say the last option because I doubt the greedy shysters would want the public to benefit from QE.

I would guess we can keep an eye on Europe at the moment since they are making noises about deflation again.

So what happens to the gold price? Maybe we are witnessing it right now.

[simon13]

Physical gold and silver are stand alone assets without counterparty risks. I think we all recognise there are systemic weaknesses in the monetary system, banking and government deficit spending and unfunded liabilities all of which are linked. The system is so interlinked and complex that predicting how this crisis will play out is very difficult. Perhaps hardening your own position with regards to debt, tangible assets and essentials is the safest play, if not the potentially most profitable were you to pick the correct scenario and time it right.

If you believe in a certain way this will play out, then I wouldn't go all in. If silver and gold drop in value, you still have the same amount of silver and gold but these will always be worth something.

i like belangp's videos on youtube, he thinks in gold and silver in terms of purchasing power against oil, not dollars.