How Can I Protect Myself Against the Falling Dollar?

Ask the Expert

Damon Geller
President
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We all know the damage caused by the devaluation of the US dollar. Every day, your money is worth less than it was yesterday. Your purchasing power shrinks and your investment portfolio suffers. The good news is, with each downtick of the US dollar comes an uptick in the value of gold. Fundamentally, gold's value increases because the amount of printed fiat currency is also increasing. Simply put, the increase of fiat currency devalues fiat currency. As long as the Federal Reserve and the central banks around the world keep printing fiat currency, the price of gold will continue to rise.

Investing in gold can form the cornerstone of a conservative or aggressive portfolio because it tends to move in the opposite direction of paper investments and the US Dollar. It has become even more popular as a necessary addition to any diversified portfolio in the last few years. You buy gold to hedge the items of perceived performance in your portfolio, but don’t be surprised if gold continues to out-perform most everything else if we keep printing currency, accumulating debt, and spending money we don’t have.