In a misguided attempt to grow the economy, the Federal Reserve is inflating the economy with too much "easy" money and spending...the likes of which the U.S. has NEVER seen before.

Gas prices are at closing in on $4 a gallon.  

Grocery prices are crimping even the most stalwart family budgets.

Any paper assets (stocks, bonds, exchange-traded funds, etc.) that you own will pay you back in U.S. dollars if you sell the assets.  

Do you really want dollars when every day seems to end with the dollar worth less than the day before?

We may have killed Osama bin Laden, but we haven’t even wounded increasing levels of international and domestic problems, war and more threats of terrorism.  

Housing prices are plunging and still haven't hit the bottom.

So can anyone out there give us a good reason NOT to own gold?  We certainly own it.

If you are considering an investment in gold for a small portion of your money, what you buy and how much you pay is critical.  Here are 4 rules for buying gold...

The Smartest Way to Buy Gold 

1.  Forget the ETF's and buy bullion.

2.  Don't overpay!

Before you buy, log onto www.goldprice.org and check the spot price.  Pay NO more than 5-8% over that price.

3.  Know who you're buying from.  

The U.S. Mint does business with authorized dealers only.  A list is available from The Mint at its website - www.usmint.gov - broken down by state...or talk to your stockbroker about the firm's policy re: the purchase of gold bullion.

Never, ever buy from a stranger over the phone or from a television or radio ad just because it was voiced by a celebrity.  

4.  Avoid "proof" coins.

Along with their gold content value, you're often paying for a fancy case that they come in and the fact that they are struck for collectors in "special" editions.   The premium you pay for them can wither on the vine if the collectors lose interest in them.

Focus on purchasing American Gold Eagles, Canadian Maple Leafs, South African Krugerrands or Australian Gold Nuggets.   

These can later be sold for their gold value alone and not the added risk of collector perceptions.

Click here to read more on why you should own gold in today’s market.

Read More In: Banking Family & Money Invest Wisely