Hello and welcome to Moneygirls quick and dirty tips for a richer life.

Today's topic, dollars and anti-dollars.

After last week's episode about how banks make money,

a listener named Carl told me about an educational video by Paul Greenio called Money as Debt.

It's an animated film that runs a little over 45 minutes and it provides an excellent explanation

of where money comes from, the central banking system, and the implications of fractional reserve banking.

I've posted a link to this video at quick and dirty tips.

I've also posted a link to Paul's website where you can get the video on DVD.

It's well worth watching.

And now on to our topic.

Last week the price of gold reached a 27 year high.

So why is it so high? What's up with the price of gold?

The price of gold tends to go up when the value of the dollar goes down and vice versa. This relationship is the reason

that gold has been called the anti-dollar. Gold offers protection against inflation and is considered

to be a safe store of wealth during times of currency. against inflation.

When individual as well as institutional investors are worried about the value of the dollar

going down, they tend to invest more of their money in

gold, so the demand for gold goes up when confidence in the U.S. dollar goes down.

The price of gold has been going up because the dollar has been losing value.

The Federal Reserve has issued vast quantities of money and this increase in the money supply

has led to fears about inflation and a declining dollar.

To see how the value of the dollar has dropped, check out the link that I've posted at quick and

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