Comment Re:Good luck with that! (Score 2) 361
In other words the volatility in gold is the result of manipulation.
It doesn't matter why something is volatile when considering an investment, just that it is, and is unlikely to stop being volatile. Market manipulation is not something you can do something about, and actually gold is already quite regulated, but still the market is full of fake gold, paper gold (ETFs etc) which encourages speculation, and as it is a popular inflation hedge, it is liable to manipulation, panics, cornering etc etc. On top of the volatility, It's also vulnerable to being targeted by governments when they run out of other ways to tax people (as it has been in the past), precisely because it is popular as a store of value (in spite of being unreliable).
It doesn't tend to track inflation when set against something like the Dollar, on the contrary, it is prone to sudden booms (as everyone piles in to protect their wealth), and long busts (as everyone converts it to something they can actually spend and forgets all about it in the good times), which are completely outside your control. I'd say it fluctuates even more than fiat currencies, which are usually pretty reliable in depreciating slowly.