To sum up Gibson’s paradox, when the general pace of economic advancement slows: 1) bonds yield less interest, and 2) gold becomes more competitive, and thus 3) consumer prices (which are set in gold) fall. Conversely, when the economy becomes more productive: 1) bonds yield more interest, and 2) gold becomes less competitive, and so 3) the prices of food, shelter, and other consumer goods and services rise.