Gold Prices - increase or decrease on long term

When confronted with savvy investors on how far the Gold can go, when is it going to drop again or when is it going to peak, I can only say this:

Gold (and silver) is a monetary commodity.

Unlike other commodities, like rice, wheat or ore, it is scarce, it is being hoarded by Central Banks, investors, institutional investors and now rich and alike.

According to figures of the World Gold Council, there is not much mined every year. So, demand will always increase, but supplies are getting scarce.

Second: as long as Gold will be traded in USD ( a heavily inflationary paper instrument printed by the private bank: Federal Reserve ) or any other deflating currency, Gold's equivalent value will increase. Not Gold's intrinsic value!

Meaning: if the USD continues to go down ( as it will, because the FED is massively printing them as we speak ) people want more USD for the same amount of gold.

But of course, there is a real cost. The value of our currency goes down with every new dollar the FED prints and with every dollar of new deficit spending. But the politicians can all pretend inflation doesn't exist. When it shows up in our economy, they can lay the blame with "speculators", oil companies and George Sorros, Madof, Lehman etc....

The government can manipulate the dollar like this because it's not backed by gold. President Nixon "temporarily" cut the tie between the dollar and gold in August 1971. You can see the video here.

In it, Nixon promises the dollar won't be devalued - "your dollar will be worth just as much tomorrow as today"... ( we all know by now, this promise was just a plain lie! )

At the time, $35 would buy an ounce of gold. Today, it takes more than $1,100. That's a 97% decline in purchasing power.

It's fascinating how many people believe this won't happen again...

I'm not surprised gold is trading at $1,100. I'm surprised it's not trading for more than $5,000.!

Now, let's say gold hits 5,000USD/Oz. It only means the USD has lost 70% in its value compared to today when gold is at 1,160USD. So Gold is not becoming "more expensive" , it is the dollar ( or an alternative currency ) that is loosing its "stored" value.

It is up to you: you keep your wealth in "so-called-stored-value-fiat-currencies" or in ownership assets, such as gold, silver, land and real estate?