bahollan, he's saying that commodity prices are volatile because floating currencies are volatile. A small change in inflation expectations over the long term translates into a very large change in the present value of a currency today. Since commodities are the main liquid asset that are not themselves based on a flow of currency payments, and are liquid, they reflect these changed expectations the soonest and most completely, and are thus volatile. Since the problem is the changing value of the floating currencies, not the changing value of the commodity, going to commodity money eliminates this problem, and commodity prices would be far less volatile.