I've been watching economic experts for years now going back and forth on two topics: "Is Hyperinflation just around the corner? It sure looks like it!!" and "Are we in a Deflationary death spiral? It sure looks like it!!"
If the price of gold is dropping for no obvious reason, then I'd say that the odds of us being in a Deflationary death spiral are pretty good.
The most obvious reason is that higher prices make it more economically feasible to mine the ore, process it, and sell it on the open market. For the most part, it really is that simple.
Is gold going down or the dollar going up..? There’s a lot of people betting on the Kenyon getting the boot.
Better to own gold in a deflationary time than anything with maybe exception to cash. If we truly have extreme deflation, absolutely everything in our economy is absolutely 100 % screwed.