When currencies are printed without limit, the role of gold becomes simple: Protect purchasing power. The challenge is that most investors do not fully grasp what that means. A simple illustration helps. Imagine a closed system with 100 individuals and 100 apples. Each person also holds one gold coin and one dollar, each of which has the same value: Each coin or dollar can buy a single apple. Now, magically, double the number of dollars. At first, everyone feels richer, but nothing real has changed. There are still only 100 apples. Over time, due to this printing of dollars, behavior adjusts and prices rise. An apple ... (full story)