[jpollock]

Gold can be inflated the same way as any other currency. Since people don't typically trade in physical gold, but in certificates used to represent the gold, it is possible to print more certificates than you have gold. While this is a fraud, it is an increase in the money supply.

[fnordfnordfnord]

Yes, paper gold isn't gold. Or at least it won't be when you need it to be.