By Alexander Green, Investment U's chief investment strategistNEW YORK ( TheStreet) -- Speculators should sell their gold. I know most readers will disagree -- I've been down this road before. To wit: In 2000, we called investors' love affair with Internet and technology shares "perhaps the greatest investment mania of all time." Readers wrote in that we "just didn't get it," that we didn't understand the New Era. And, indeed, it made no sense to me. In addition, six years ago, when I warned of the dangers of the housing bubble, readers chimed in again, telling me that real estate always goes up. (They said that even though it had fallen for 14 consecutive years in Japan.) So my opening line may irritate the majority again. But gold, now priced at more than $1,365 an ounce, is trading in La-La Land. And if you're piling into it now, you're taking a very poor risk. Don't get me wrong: High-quality gold shares should be part of any well-diversified portfolio. Unlike the metal itself, blue-chip gold stocks have delivered an average annual compounded return of about 12% over the past 50 years. And they're not correlated with the broad market, which gives your portfolio higher returns with less volatility. That's why we own the Vanguard Precious Metals and Mining Fund ( VGPMX) in The Oxford Club's Gone Fishin' Portfolio and AngloGold Ashanti ( AU) in our Oxford Trading Portfolio. But gold has more than tripled in the past five years and quintupled over the past 10. Gold bugs say it will go much higher, but there are good reasons to be skeptical. Gold is a wonderful hedge against inflation and economic calamity. And since we recently experienced a full-blown financial crisis, it's natural that gold prices spiked. But why is it still climbing? Things are getting better, not worse. The risk of a catastrophic meltdown has lessened considerably over the past year and a half. And inflation? The CPI has dropped from 2.7% at the end of 2009 to 1.2% at the end of 2010. Inflation is not a threat. "Expect that to change," the gold bulls insist. They predict that higher inflation is just ahead because commodity prices are rising, the Fed is printing money and Congress is spreading it around with a fire hose.