3) Gold is an Inflation Hedge (and there is little or no inflation)
A recent Wall Street Journal article is typical when it says that gold is down because “inflation remains subdued, dimming gold’s allure.” While global policies of monetary expansion will likely lead to more inflation, in time, the main point to remember is that gold does not “track” inflation, but is a long-term hedge against paper-currency value erosion. From Roman times to the present, an ounce of gold could always buy a good suit of men’s clothes. Today, an ounce of gold could buy a man a fine wardrobe – suit, shirts, ties, and a nice pair of shoes. Gold does not track inflation every month or year, but it has historically beat inflation over a lifetime.