Rick Ackerman asked (co-deflationist) Bob Prechter to explain how Gold behaves as it does. Here the link to his questions and the answer by Prechter on this matter. I find the answers a bit confusing, but remarkable. Maybe someone here likes to comment on it.

http://www.kitco.com/ind/akerman/jan...

“I should not be famously bearish on gold. I have said that gold will do better than most commodities but not as well as cash. I also have said, own some gold anyway. The bear part comes in because I have left open the possibility that it can still get to $200/oz. No one else thinks it’s possible. But we have also said all along that once its fifth wave ended oil would fall back to $10. Isn’t it interesting that no one argues for oil, platinum, silver, etc? It’s because gold is the only thing that didn’t crash. But to repeat, this is exactly how I have expected gold to behave on a relative basis. It’s not making anyone rich.

“You don’t have to answer why gold quadrupled off its lows. That happened in the wave 5 commodity boom during the wave b credit inflation. A better question is why gold did so poorly relative to most other commodities, which went up way more (14 times in oil for instance). Another question is why silver lagged its 1980 so badly. The inflationists can’t answer these questions except to keep insisting that $200 silver is coming.

“Another question is how come gold is unchanged after 29 years of inflation?”[Signed, Bob]