What is inflation?

Inflation is a general, sustained rise in prices — equivalently, a fall in what a fixed amount of money can buy. A little inflation is normal in a growing economy; a lot of it erodes savings and makes planning harder for everyone holding cash.

The number that actually matters for most financial decisions is the real return: the nominal return minus inflation. A savings account paying 4% during 6% inflation is losing purchasing power even though the balance is growing.

This is exactly why gold's trust profile lists real yields — not just interest rates — as a key driver: gold competes with yield-bearing assets, and that competition is decided in real, inflation-adjusted terms, not nominal ones.