Sir Isaac Newton first standardized the price of gold in 1717, since then it has actually gotten cheaper. If you bought during the American Revolution or the American Civil War, the price remains about the same as today in 2008 dollars. It has spiked up and down, mainly in response to wars and varied government regulation.

I think the fears of hyper inflation are exaggerated, we are in a cycle much like Japan has been in for the last 15 years. Slow deflation, marked by huge government intervention and very low interest rates-which failed to stop the slide. Government spending will eventually self-limit when they no longer find a ready market for treasury debt auctions. This will still leave a huge debt to be deflated. Expect periods of high volatility in the interim.

My opinion is worth what you paid for it.