The supplementary quantity of gold that streams from it into commerce goes at first to the owners of the mine and then by turns to those who have dealings with them. If we schematically divide the whole community into four groups, the mine-owners, the producers of luxury goods, the remaining producers, and the agriculturalists, the first two groups will be able to enjoy the benefits resulting from the reduction in the value of money, the former of them to a greater extent than the latter. But even as soon as we' reach the third group, the situation is altered. The profit obtained by this group as a result of the increased demands of the first two will already be offset to some. extent by the rise in the prices of luxury goods which will have experienced the full effect of the depreciation by the time it begins to affect other goods. Finally, for the fourth group, the whole process will result in nothing but loss. Ludwig Von Mises
About This Quote

When Adam Smith says that the revenue of the mine- owners is greater than that of the others because the price of gold was increased with the rise in demand, he is referring to the law of supply and demand. The owners of gold mines are able to sell more of their product at a higher price because there are so many people who want to purchase it. But this increase is not permanent, as Smith points out. The same price will have no effect on demand when the citizens go back to using money based on gold reserves.

Source: The Theory Of Money And Credit

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