I think this proves/evidence why Gold is not used as money. World people have accepted paper money as real money and there must be a good reason for it.
Then why has the price of gold risen at all? Shouldn't the mines be able to keep supply relative to demand fixed? We have been hearing the "we can't keep growing" thing for a long time. The carrying capacity of the earth is continuously changing as our ability to use and reuse its resources change.
More people care about voting for an American Idol than an American president too. People are sheep. Paper money was backed by gold before...the bills still looked the same when they were not backed by gold. If people dont see change, they dont think anything changed.