Earlier on I saw 7thfort mentioned that the price is RM32 per gram back in year 1981.
I have checked the gold price history chart and it's more or less correct, depending on USD exchange rate then.
Fast forward 32 years to 2013, the price is now RM137.17.
This represents a 4.65% ROI per annum, which is not too far off from our inflation estimate.
Thus, based on this alone, it seems to indicate that gold price increase is in proportion to inflation.
To make $$$, your ROI will need to be higher than that, somewhere in the range of 6 - 8% for a safe investment.
Sifus please critic my logic for flaws, I am trying to convince myself to buy gold too