The tariff question is a tough one. Higher costs for consumers, but not an increase in the money supply, which is the definition of inflation. Therefore, 'stagflation'. Maybe even deflation, because tariffs slow down trade and commerce. That's why many blame tariffs for the depression in the 30s.
China is already retaliating, and Trump hasn't even taken office yet.
But that said, gold is quite safe, because even during a depression, it may drop in nominal price, but still usually holds value relative to everything else. It's not like stock in a company that might go out of business. So I'm not planning on selling.
The tariff question is a tough one. Higher costs for consumers, but not an increase in the money supply, which is the definition of inflation. Therefore, 'stagflation'. Maybe even deflation, because tariffs slow down trade and commerce. That's why many blame tariffs for the depression in the 30s.
China is already retaliating, and Trump hasn't even taken office yet.
But that said, gold is quite safe, because even during a depression, it may drop in nominal price, but still usually holds value relative to everything else. It's not like stock in a company that might go out of business. So I'm not planning on selling.
>>It's not like stock in a company that might go out of business. So I'm not planning on selling.
Good thinking there, Al. I'm glad you aren't.
That analysis matches mine.