Saint,I was also around in the 80s and even much before that....

Saint,

I was also around in the 80s and even much before that. For instance, by first gold bar was bought when gold was at $36 an ounce.

However, the picking of the price of gold was also motivated by the feeling that the world was falling apart as the consensus at that time was that America had to confront the expansionist Russia. (The initial Soviet deployment of the 40th Army in Afghanistan began on December 24, 1979)

http://en.wikipedia.org/wiki/Soviet_war_in_Afghanistan

It is true that an unprecedented amount of money has been printed in order to keep the economy afloat, and in consequence of that it is quite possible for inflation to return to double digit levels as it was the case during the late seventies and early eighties. However, that it will be entirely dependent on what central bankers decide to do as they have instruments at their disposal to curb inflation at any time if they so wish as Paul Volcker and many others before him demonstrated.

http://en.wikipedia.org/wiki/Paul_Volcker

IMO to make money out of gold there is an window of opportunity available that happens to be open just before the expectations about future inflation (the driven force of the pog) raise. Once he horse has bolted the opportunity
to make money disappears as the prices of everything raise in tandem with the inflation rate.

Therefore, what good will be to have gold at $4,500 per ounce due to inflation if costs per ounce become of the order of $4,000 or more?