Gold, the Dollar, Hyperinflation

Needless to say, Martin Weiss has my attention lately.I've been recommending everyone read his special report Nine Shocking New Predictions for 2010-2012.But for those who prefer to get the highlights here, let me provide yet another.

Of late, the dollar has shown some resiliency against other major currencies of the world.At least that's what the talking heads will tell you.The fact of the matter is, Gold has shown far more resiliency than the dollar.For example, in August 2007 the dollar was close to the same value it is today against the Euro.And spot gold prices were under $800 an ounce.

I think that suggests the smart money does not believe the dollar has staying power.If the rally were real, one would expect gold to respond in a similar manner as history indicates.If indeed, the dollar has no staying power, that begs the question, when will this rally turn?According to this report, We can expect, "A major, new dollar decline, beginning in thethird quarter of 2010 and ending in early 2012."Specifically, "Measured against gold, the dollar’s purchasing power will fall by half or more, depending, of course, on the intensity of the global selling that hits the greenback."

Folks, stay diligent in your effort to diversify your portfolio with gold.Take advantage of the dips in the gold price to accumulate additional gold coins, a handful of American Silver Eagle Coins.From this report we learn that the number of experts who believe in $2000 gold is growing all the time.

Make no mistake, inflation may be the only way out of our debt troubles.In my opinion, to own gold now carries much less risk than owning paper.You can't print more gold.