US debt crises to push Gold higher, page-33

Ourlady that is not a true representation of the facts.

Face value currency must lose value using your interpretation.  Inflation reduces what you can buy with it.  That is why there is such a thing as real rates, the interest that can be earned on that cash above the inflation rate. Inflation within parameters is good for the economy, it induces growth.

Adjust your hypothetical $40 by real returns and you would get a figure much closer to the $1300 gold price. 

Equally gold must increase in value over the long term, assuming there is a demand of sorts.  Reason?  Clearly to make mining the stuff viable the realised price must be greater than the input costs - machinery, wages, consumables etc.  And that is more or less what is happening, notwithstanding of the occasional gold bubble. Gold won't make you rich but it is unlikely to break you either.