Poor Economy = Low Gold Price?Jeff Clark Many investors consider a weak economy to be a bearish environment for commodities, including gold. Doug Casey says we have entered into what will become known as the Greater Depression. Thats as bearish as it gets, so should we expect gold to decline if the bears are right? One of the most rocky economic periods in modern times was the late 1970s. For those who dont remember, the period was characterized by: Outside of the Great Depression, its hard to identify more trying economic circumstances. So how did gold perform during this challenging economic environment? While there are many variables at play and no two economic time periods will be the same, this history lesson signals that a sluggish economy is not necessarily an obstacle for gold doing well. Indeed, some of these factors directly contributed to the rush to gold, which is not just a commodity, but the single best tool for storing and transferring wealth (money) ever devised. In short, there is no contradiction between Doug Caseys gloomy global economic outlook and his bullishness on gold. In our view, the former is the reason for the latter, and a very good reason to buy. If the history of the current bull cycle for precious metals even slightly rhymes with what happened in the 1970s, the market mania that lies ahead should bring us the biggest and fastest gains on our investments to date. linkwithin_text=Related Articles: 