When a commodity is valued two very different ways...

[cthulu2016]

Funny thing about gold. People buy it for two reasons that are somewhat in opposition.

Some folks buy gold as a hedge against inflation.

Some folks buy gold as a hedge against the collapse of the world economy.



In that way that people form communities of delusion (I'll share your delusion if you share mine), this has created an idealogical type.

Folks who assume the world economy will collapse due to inflation.

Good luck with that!

Inflation requires rising wages.

The real dangers to the world economy are deflationary.

[bhikkhu]

1. Inflation is also be fueled by an expanding cheap resource base

one of the most erroneous predictions of the past few years was that high oil prices would drive runaway inflation. While there have certainly been some direct costs passed through, and some real inflation as a result, the dampening effect of the resource constraint was largely unpredicted.

In the macroeconomic perspective, money is simply a proxy for labor and resources. If neither are moving much in quantity or quality, then neither does the value of money, much.