I think the Germans during the period of hyperinflation between the wars would have wished they had gold. If I were living in Zimbabwe I'd wish I had gold. Gold is stable and has been regarded as the ultimate money for thousands of years. It's not going to change now. It is in fact coming back. I took gold from Hong Kong to India many years ago and I did indeed buy food and lodgings with the proceeds. It's silly to say you can't buy food or put a roof over your head with gold. What can you buy with Zimbabwe fiat? You have to be a multi millionaire to buy a loaf of bread. You are also very wrong that the cost of finding gold will become less. South Africa's output has dropped 27% over the previous year and it has nothing to do with a falling gold price. Australia's output has declined through lack of resources. The fact is that the cost of finding gold and processing has become progressively more expensive not cheaper. Add to that the fact that Putin has asked the Russian Reserve bank to put 10% of its reserves in to gold and that the Chinese, traditional lovers of gold, are now able to buy it quite easily and that India, number one buyer of gold, is getting much wealthier and you have a commodity in short costly supply and with increasing demand.
