Schiff has a nice article this week on gold’s advance (or which can be contrarily viewed as the dollar’s fall). Below is just a brief excerpt.
http://europac.net/externalframeset.asp?from=home&id=17199&type=schiff
“When governments act to prop up sagging markets, or bailout investors or depositors of failed institutions, they create inflation (print money) to pay for it. This, in effect, transfers capital from prudent investors to speculators. At the same time, it pulls the rug out from under the safest vehicles of traditional investment – bonds and cash. It becomes hard for investors to protect their principal, much less grow their wealth. Some turn to gold, with its historically guaranteed ‘floor’ against losses, and others start making ever riskier investments to try to ‘beat’ the inflation rate.”
