Gold equities were some of the strongest performing asset classes during the 1930s Great DEFLATIONARY depression.
Hyperinflation would be my preferred route over the next 3-5 years, 10% inflation the second choice. However, need the current VELOCITY of the huge amounts of funny money printed to make their way into the REAL economy. Most of it parked up earning 0.25% interest or less with central banks. A classic liquidity trap. In the meantime, real interest rates are basically negative after current inflation is taken into account so it costs nothing in income foregone to hold gold. Currency devaluation also continues to be the method of choice in the race to the bottom
If we do get a deflationary depression then confidence in the whole shell game will be completely shot {for those that are not aware of it yet...read the majority of lemmings}. Lack of confidence is also a great driver for the gold price, as was witnessed in the 1930's.
My punt is still that bogey from the 1970's....STAGFLATION.
AMX Price at posting:
34.0¢ Sentiment: None Disclosure: Not Held
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