> Scarce simply means is in short supply, but prices aren't determined by supply alone, they are determined by supply and demand

You can't predict demand, nobody can. So all things being equal (demand being unpredictable) you are better off holding something which is in low supply.

People are absulutely scared to death about inflation. It's deeply rooted in our brain and rightfully so. The first governments would dilute their citizen by adding lead to coins and reduce the silver %.

The same thing has been going on for millennia.

This is the reason why people hate inflation and have a strong preference for deflation.