How is gold affected by inflation over period of times?

Unlike many other currencies, gold value is more stable
and not prone to be affected by inflation like other currencies. For
example, think of yourself as a man in Germany during 1920's. If you
have a million mark, which was worth something before, is used as
wood fire. If a smart person bought gold with the money they had, or
have invested in gold prior to the inflation, their money's worth
would've stayed intact.

This is why many Americans now are buying gold more and more, because
if anything was to happen to the USD currency, their gold value would
stay and they won't have to lose their hard earned money. In 1900,
the gold price was $20.67/oz, which equates to about $503/oz in
today's prices. In the two years to end-December 2006, the actual
price of gold averaged $524.

People buy gold because its power will stay stable for a long period
of time.

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