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Sorry, I just typed out a reply to this and deleted it because I can't speak to the details adequately enough for my liking.

The gist of it was that gold is also subject to monetary pressures because its price is a reflection of the fact that it is used as a financial instrument. (In other words, gold's value is tied to the fact that it is used as currency).




One can print more dollars (and that's happening). One can't increase gold supply nearly that easily.


Except one can also retire currency to shore up devaluation at a later date. You can't un-mine gold. Gold's value doesn't directly correlate to supply and demand or it would continuously go down in value. We're still pulling it out of the ground pretty regularly, and as far as I'm aware, nobody is putting it back.


To increase the amount of fiat currency, you just have to print a lot of it. To do that with gold is much harder. Gold is expensive to produce.

If by "shore up devaluation" you think that governments will destroy fiat currency, I think that is unlikely to happen. Do you have examples of that ever happening? Usually more is printed and sometimes so much that you end up with hyperinflation.

With the current cost of gold productions, which are unlikely to change dramatically, hyperinflation of gold is not possible. Gold provides security and the market appreciates that. Yesterday it did top $1000 (again) by the way.




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