Because - there are too many unpayable debts supported by high asset values. Almost all the banks are, or would be, insolvent. But, people still need some form of money and means of transacting. Remember, gold does well in a deflation too, it just takes time for people to give up on paper money.

Silver is a bigger question mark, since it does have more industrial uses. I worry a bit about my silver investments for this reason.

I've been buying physical gold lately in case we do have a deflation.