jetsby10

Inflation: Pass It Through

tuj, first, Gold has great industrial applications. We don't use it because it's too valuable. I work in a lab and just had to order some gold plated lock washers because they have superior conductivity. The fact that we don't use it widely in the industry is one of it's strengths. The supply of physical shouldn't change that much year over year. Platinum has too many industrial applications so the supply can be greatly affected. If we used metals that have industrial uses to determine inflation we would have skewed numbers. If you looked at Rhodium, you would deduce we have an inflation rate of about 500% a year the past couple of years.