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I thought gold went up with inflation.

• dmiladinov 14y ago
  The only way for gold to inflate is for someone to dig up more gold, thereby increasing its supply.
  • Gormo 14y ago
    Inflation is when the money supply increases in relation to the real wealth that it represents, not when the money supply increases in absolute terms.
  • mcantelon 14y ago
    Gold's value in fiat currency goes up with the fiat currency's inflation.
  • jpollock 14y ago
    Gold can be inflated the same way as any other currency. Since people don't typically trade in physical gold, but in certificates used to represent the gold, it is possible to print more certificates than you have gold. While this is a fraud, it is an increase in the money supply.
    • fnordfnordfnord 14y ago
      Yes, paper gold isn't gold. Or at least it won't be when you need it to be.