yes folks we have high inflation here ... , page-18

"So IMO inflation could be a symptom of a gold increase phase but fundamentally they would have to be mutually exclusive except for a pyschological link from a believe system from people thinking they need to protect their wealth from inflation by buying gold"

Davo - that's the key. When folks get scared of inflation, they head for gold to protect their wealth. Price overshoots on raw supply /demand before reaching a new equillibrium.

doc