(2-25-13) The Gold Bugs have been told by the Gold and Silver Shills in financial media, who have a vested interest in rising bullion prices because they're all involved in the selling of bullion in some fashion, that Gold is "going to the moon."
Nevertheless the price of Gold and Silver can decline during a deflationary cycle -- not only can, but in fact always declines in the initial stages of a deflationary cycle.
It is not until later in that cycle that the price of Gold and Silver will begin to rise again, as currency depreciation begins to outweigh deflation, or in other words, a race to the bottom between currencies and the underlying rate of deflation.
When currencies are sufficiently debased, that's the time when Gold and Silver will begin to rise again within the context of a deflationary cycle.
The drop in price of Gold from $1800 to $1600 has proved to be a tremendous moneymaking opportunity for we short sellers. I continue to trade the Gold and Silver from the short side and will continue to do so for now.