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DOUG CASEY: Strictly gazing through a crystal ball, I think it's going over $1,200, no problem.

BIG GOLD: What about the long term Gold Price?

DOUG CASEY: Just to reach its previous high in purchasing power, gold will have to go over $2,500 probably more like $3,000 after you discount the phoniness in the US government's consumer price inflation numbers.

But because this crisis is much more serious than the one in the late 1970s and early '80s and much more far ranging $3,000 is actually a fairly conservative number. I'll say it again: gold is not just going through the roof, it's going to the moon.

BIG GOLD: What advice would you give to readers of Big Gold about how to make Gold Investments and buy gold stocks in the coming environment?

DOUG CASEY: The first thing is, you've got to have a lot of physical gold. Second, make sure a large chunk of it is outside the political jurisdiction where you live. If you live in the US, your gold has got to be outside the United States. If you live in Canada, it's got to be outside Canada, and so forth. Third, gold stocks are definitely going to howl, so you definitely should have a good position in them.

As important as gold and gold stocks are, though, I suspect we're going to see foreign exchange controls of some type or description in the years to come. That means if you don't have assets outside your native country, you're going to be caught like a lobster in a trap. I think it's very important to diversify internationally.

Buying foreign real estate is one prudent way to do so because, even though there's been a worldwide property mania, there are still some places where property is very cheap, leaving plenty of upside. In addition, if you pick a locale where you'd like to live, you'll have a comfortable place to wait things out which is a serious plus, because I think things in the US are going to get really ugly in the years to come. And most important, the government can't make you repatriate foreign real estate.

BIG GOLD: What if I don't have the ability to buy real estate outside the country I live? I know you can have a foreign bank account and a safe deposit box, but I have to report those, so how does that help me?

DOUG CASEY: You have to report a bank account, but you don't have to report a safe deposit box.