Conventional wisdom says that we should buy gold when we expect to see high inflation. The argument is simple: gold prices generally keep up with the rate of inflation, so when inflation is high, gold prices should rise.
Five years ago, as gold prices approached $1,900 USD/oz (U.S. dollars an ounce), a stream of endless talking heads appeared on business TV channels and newspapers to promote the idea that gold was headed to $4,000 USD/oz or more.
Their reasoning was simple.
The Federal Reserve, which is ...