“Yes, I think stockstradr is right about the panic aspect. Deflationary pressure is a real price killer. if you look at gold in most recessions, it goes down with everything else.”

But don’t forget what Bernanke has pledged to do in order to combat deflation: print, print, print. I think inflation is the inevitable government response to deflation. And you will very much want gold when the printing presses start revving up. In fact….I can hear them humming now 😉

Do you really think a $700 billion dollar loan is deflationary??