Not that I think that it will happen anytime soon...but if sanity actually returns to Washington D.C. and the economy would recover because we start paying off our bills...do you think gold would continue to go up or would it go down?
“That is IF we don’t see a collapse of the dollar before hand. If that happens, who knows how high gold will go”
Couldn’t this also be said about other hard assets?
Gold is in a win, win position at the current time (because of QE and Fiat currency). If for some unthinkable reason (e.g. a limitless source of energy discovered) the economy absorbed the massive debt and turned around, inflation would necessarily have to increase - a lot. How does rising inflation affect the prices of precious metals or commodities? Answer, inflation in a booming economy increases the prices of precious metals (especially those with industrial usage like silver and platinum) and commodities
“That is IF we don’t see a collapse of the dollar before hand. If that happens, who knows how high gold will go”
Couldn’t this also be said about other hard assets?
Sure, if the dollar collapses, we'll see tremendous price dislocations. Example: If the masses raid farms (i.e. Wiemar), you'll see prices for farms plummet but prices for food items skyrocket. It will be one screwed up, dangerous, miserable mess to navigate through. On the positive side, maybe you could hire guards that will work for food to help defend your farm.
Let's hope/pray it never gets to the "Mad Max" level...