The worst deflation in hundreds of years occurred during the 1930s when major central banks were on the gold standard and refused to print despite very dire conditions.
What gold types are saying here is that under a gold standard central banks can no longer print money to buy up debt, thus restraining government profligacy.
Decisive moves by the world's central banks to print money in order to stimulate the economy is likely to send gold surging, said James Dailey, lead portfolio manager at TEAM Asset Strategy Fund.