Can Gold go up in a deflationary environment?
Obviously it did during the Great Depression. But that was because gold was the backing to money. Today, or so the argument goes, it is not. It trades pretty much as any other commodity. It is therefore subject to the same vicissitudes and moods as any other commodity.
Deflationists Robert Prechter and Harry Dent argue (or have for a long time been arguing) that the price of gold in Dollars will fall along with the price of all other asset classes. The underlying premise is that gold is not money, but trades with the same vicissitudes as other asset classes, where the monetary unit is the Dollar.
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