Investing in Gold is in and of itself deflationary. If you put your fiat paper cash into real money and don’t make the banksters any money, you are the enemy of all that is righteous and holy on Wall Street. You also deprive businesses of capital they need to pursue expansionary-type activities. This then deprives the government of much-needed tax revenues. This is why Gold is the enemy of the state. You can get back at the “powers that be” for screwing over your and your children’s financial future and profit handsomely at the same time!
Gold is the vortex of a deflationary spiral once the point of no return has been passed. All other asset classes spin out of control around it, while Gold just sits there looking all shiny and disinterested. For those who point to the Gold price in November of 2008 when disparaging Gold, I point to the Gold price in February of 2009.
The smart thing to do is stay in physical Gold, wait for the inevitable financial asset collapse to deepen, then buy good cash-producing financial assets in the rubble for pennies on the dollar. This is the surest and safest way for an investor to grow wealth during an economic depression, if that is your goal (if not, you can always eat your Gold). The U.S. Dollar cannot be the ultimate safe haven that government wants it to be, because it is a flawed irrational instrument and is no longer looked upon as trustworthy by most of the world.