In a possible deflationary environment scenario, cash
is king -- and gold becomes the one form of cash that can't be printed into
oblivion.
Either way, inflation or deflation, gold wins. The reason for this is not some
magical property bestowed upon gold; it is because the reality of America's
Empire of Debt (and Asia and the Middle East's mercantilist participation
in its buildup) has brought us to this point. When the debt gets onerous
enough, the only choice left is to liquidate, and the ultimate mechanism of
liquidation is debasement of the currency. It just becomes a matter of how
to go about it, and under what circumstances. Whichever we get, inflation
or deflation, gold is the other side of the inevitable debt liquidation trade. (continued)

Gold will trade sideways to down over the next 4 to 8 months then the reality of the dollar debasement will take hold and the dollar and other currencies will cause the price of gold to go up.