[adanthar]

Oh okay, you meant buying gold. My bad, I misread your answer. That said,

1)while there's nothing "wrong" with someone hoarding bullion*, our economy/all developed economies are built on people not hoarding *anything* and maintaining spending patterns;

2)The main point of buying gold is for its perceived stability vs. a weak currency (hence why it's going up these days.) A deflationary economy, especially, say, one based on gold, would first necessitate a devaluation of the metal. Therefore, anyone hoarding gold prior to a major deflationary event (such as a return to the gold standard) would very probably lose their shirt.


*there is an exception in that, since the US is kinda short on gold mines at the moment, an investment in specifically bullion results in a trade imbalance. This matters a lot more in a deflationary economy than a regular one.