Jeff Nielson writes in Seeking Alpha about deflation. Deflation is not nearly as well understood as inflation – at least when it comes to the roll of precious metals and commodities. Many believe that the value of gold will drop in a deflationary scenario. Jeff sees the opposite and makes the case for gold rising. Here is an excerpt: "As the U.S. economy begins its next leg down (and a “leg” certain to be even more painful than the initial collapse), and as the U.S.'s previously-deluded creditors begin to comprehend the magnitude of U.S. insolvency, no one will want to hold U.S. dollars – and everyone will want to hold gold and silver.

In a high-inflation environment, a currency moves relentlessly but gradually toward a value of zero. Conversely, in a solvency crisis, a currency can go to zero overnight. Thus, instead of a deflationary environment being “bearish” for gold, it is arguably even more bullish than a high-inflation scenario." Read more here: Seeking Alpha