The Fed does not print money; it creates credit. Creating credit is only possible if there is a counterparty to take it.
Even though interest rates are low, few are borrowing. But the one sure borrower is the Federal Government. The Fed buys US Treasury bonds and agency bonds backed (guaranteed by) the Feds. This helps keep official interest rates low, but the irony is that it is nearly impossible for an average joe to get a loan for a house, or for a small business to get credit to expand its operations.
So there is a two tier system of sorts going on.
The Fed has been printing like crazy, and yet gold - the classic indicator of inflation - is at nearly a three year low.
So the story is a bit more complicated than some would lead you to believe.
If, like Ron Paul, you started buying gold at $35 per oz, you've little to worry about. If you started buying at $1,900, there is more reason to be concerned. And if you borrowed money to buy gold - there is that old saying...'The markets can stay irrational longer than you can stay solvent.'
In the long run, gold wins. But in the long run, we're all dead too. The important thing is to look at conditions now, and right now, they look better for the dollar than gold, in my humble (and subject to change at any moment) opinion.
! T H A N K . Y O U !