As we live in a global economy many exUSSR citizens remember the fall of the Ruble. I have a Russian friend who's salary is pegged to the dollar. They are buying gold to protect themselves from a dollar decline.>>>>>>>>>>>
The answer is casual to the most obvious observer! You are confused, I am regularly assured by FREEPERS that there is little or no inflation and REAL (inflation adjusted) wages are higher than ever before. One poster even happily informed me that a loaf of bread costs about the same now as it did in 1963!! Gold is going higher only because things are so rosy that some people just can't stand all the good news so they buy gold to make people think things are worse than they are. Either that or the aliens from the planet Kaputnik are hauling it away in spaceships.
The bread is much better then the old bread. So the cost is not really higher in relation to the value. CPI adjusts for value.
Its just like our old 1976 Toyota that cost less then 4K.
The new one does not cost more compared to the added value.
Thanks.