As above, haven't precious metals just tanked price wise during all major economic recessions etc? so why does buying gold and silver make sense now? for coming out the other side? or you think now will be different for some reason?
It could if we have a deflationary depression where prices on everything go way down. However, I think alot of people expect an inflationary depression where prices skyrocket. Investing in silver or gold is just that...an investment and carries some risk. However, for my own situation I feel comfortable taking the risk because unlike other investments, silver or gold will never go to zero. On top of that, it seems more like that inflation will occur instead of deflation with the way they are creating money out of thin air. Just my opinion though...
My hobby: collecting real money 1 copper cent or nickel at a time.
gold is definately moving up. I think other metals will move up too once the newly created money starts hitting the market in a meaningful way. It's all about inflation IMO.
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw. Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony Passive Income blog
Gold historically performs well during times of economic uncertainty. This includes both times of high inflation and deflation.
During deflation people hoard money to try and perserve their wealth. Gold is considered money by many and does not carry the risks of FIAT. So many people prefer hoarding gold money instead of paper money.
Also if we continue to deflate and gold stays flat or even falls slower than the deflation rate, your wealth is actually increasing because the stuff you need to live is getting cheaper. For example, every day where oil falls and gold stays flat is a day where you have gained wealth.
Copper will get kicked during deflation. Silver is iffy.
Anyhow, I still think prolonged deflation is unlikely, but the possibility is worth considering. IMHO
Wont silver and gold prices tank in a depression?
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Posted - 10/09/2008 : 13:30:36
