"One, to buy heavily into gold bullion on the premise that the gold price will hold up well as an inflation hedge. For this to happen, you need the price of gold to go up higher than the rate of inflation."
Well, a rational person with access to the capital markets, would look to gold only if inflation linked government bonds called TIPS, Treasury Inflation-Protected Securities, were expected to return less than gold, which comes with storage and insurance costs attached to it, unless, of course, one does not believe in the government statistical data about inflation.
