Even though I am bullish on gold for the long term I can’t help but thinking it’s becoming too mainstream.   Anytime you here “I hear gold is a good investment” around the office or in causal conversations you know things are going to turn out bad for the average investor.  Not too long ago I remember hearing about internet stocks then real estate and now gold.  Everytime the average investor jumps into the “next big thing” it seems the Wallstreet boys find a way to pull the rug out from underneath everyone.

Many don’t remember but back in 1933 Roosevelt put forward Executive Order 6102 which called for all citizens to turn in their gold to the Federal Reserve or face fines of $10k or jail time  up to 10 years.  The Federal Reserve gave citizens $20/oz then shortly after gold was seized the price went to $35/oz.    It wans’t until 1974 that gold was allowed to be legally held by US citizens.

After saying all this I still recommend gold a hedge against the falling dollar and the hyper inflation scare.  Some forecasters even blame the falling US dollar as the cause for the high oil prices.  Even though we are in a global recession and oil inventories are at record levels the price still remains between $70-$80.

Maybe its time we all purchased a small safe and filled it with gold coins.  Or start burying gold in our back yards.  Might be kinda fun making a treasure map.

If you want to learn more about purchasing gold check out these links.

http://goldprice.org
http://midasresources.com
http://scotiamocatta.com/