Impact of deleveraging and deflation on gold price

jharting
By jharting on Wed, May 21, 2014 - 6:16pm

I recently received a free newsletter called Survive & Prosper that has 2014 predictions for declining gold prices in 2015.   The article cites deleveraging and deflation, which would follow a predicted market correction of 20%+, as being the reason for this declining price.  

The article says "The next stop for gold in 2015 and 2016 is around $700.  Ultimately gold will likely bottom around $250 between 2020 and 2023"  Also, "Historically gold tends to rally during the anticipation of a financial crisis, then collapse when deflation and debt deleveraging set in."

I suppose this is roughly analogous to what occurred between 2008 and 2014, but based on my readings it does not feel right for the next correction as the government would do anything to fight this level of deflation by printing an ever increasing amount of cash.  Also gold is money and a safe haven in these circumstances.  I guess I am curious about how others would view the potential for this.  

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