Person A buys gold with 1300 dollars now, and then he gets to sell it again for 5000 dollars in 2012.
Person B hangs on to his 1300 dollars.
In 2012 Person A has retained his 2010 buying power, which is now three or four times the buying power of Person B.
This shows that Gold is a lifeboat for your wealth. It doesn't get you more buying power - it preserves your buying power.
Which is way better than losing ~ 2/3 of it.
If someone wants to increase his buying power by investing in Gold, I suggest buying shares in Canadian Mining companies.
But to hang onto what you've got, get the hell out of cash and bonds. Put your money into the usual domestic commodities FReepers love, and invest at least 25% in Gold (bullion) and other hard assets.