Precious metals like Gold & Silver are crucial for wealth preservation in your total portfolio. As the Fed continues spiral out of control with Quantitative Easing II, they have flooded the market with billions of additional Dollars. This action continues to benefit those who keep the faith physical Gold & Silver.
The Fed handling of the US Dollar has caused a decline of over 20% value in the last 4 years. This led to considerations by OPEC & other global financiers of going off the Dollar as the currency of choice. Richard Daughty, The Mogambo Guru, sheds light on the effect of QE2 to the Dollar, read his take in: Losing Faith in Paper Money.