Many believe and have been taught by our educational institutions that inflation = increase in the price of goods, commodities and services. However, that is only the result of inflation and not inflation itself.
There is only one type of inflation; monetary inflation. Therefore, inflation is the increase in money supply and deflation is a decrease in the money supply.
As it stands right now, there is a massive increase in the money supply and, therefore, look out for massive inflation in the future. You will see this reflected in gold price.
As a matter of fact over the past 6 yrs gold has doubled in price and still has a long way to go.
I expect Gold to hit at least $2000.00 by the end of 2011
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