I think the best answers are what you do your own research.

But:

1. Take it or leave it, Central banks kept gold because they know it is the ultimate currency if all fails. past FED researve chairman Alan Greenspan clearly understand it. And most of Wall Street insiders knows it.

Alan Greenspan, Gold quotes:  In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. ... This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard.

2. inflation: are your referring price inflation or monetary inflation? better get that clarified first.

Price inflation is subsidized by China and emerging market, but will not be for long.

Monetary inflation is where gold price reflects.

3.All paper currency will eventuall lose its pricing power, historic speaking. Because that is the politician's nature to devalue so they can over spend.

4. Ask FED when they are going to stop printing paper money.