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Thank you Duke-
Unfortunately; a google search didn't turn up the
article referenced. In this article; he referenced the fact that
the price of
Homestake Mining SOARED during the depression of
the 30's. How odd is this; or difficult to understand; given that
the
economy at that time was undergoing massive
deflationary pressures? I can only suppose that it has something to do
with
the following historical events; on which I would
like someone to please comment? I suppose the question I'm asking is that
if the economy teeters towards deflation; can't a
case be again made for gold? Many
feel that gold will not be a good
investment in a deflationary scenerio.
<FONT face=Arial
size=2>============================================
"An aftermath of the Panic of 1929 was a wave of
currency hoarding and gold withdrawals which resulted in the failure of 5,504
banks between 1930 and 1933. Commodity prices sank to their lowest levels
in 20 years. To restore confidence in the banks, to stop the gold drain,
and to bring about higher commodity prices, President Roosesvelt issued a
proclamation of March 6, 1933,
* closing all the banks in the courtry for 4
days,
* placing an embargo on the export of gold,
silver and currency during that period, and
* ordering that gold and silver could not be
exported or withdrawn except on a license from the Treasury
Department.
The President's actions were confirmed by Congress
in the Emergency Banking Relief Act of March 9, 1933, which also authorized the
Secretary of Treasury to call in all gold and gold certificates in the
country. The foregoing government actions took the U.S. off the gold
standard and made it illegal for U.S. citizens to own gold."
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