People looking to get a diverse investment portfolio have been advised that it is still a good option to add gold to the list of their funds.
While gold had experienced a strong surge in growth during 2011, there were questions over whether the commodity would continue to see such a strong rate of growth or if it would start to decline over the coming months.
Considering the issue, F&C Asset Management stated it was looking in to whether investors and analysts were right in thinking gold had come to the end of its strong run and if it was time to look for a different asset.
Looking at the advantages and disadvantages of gold, Ted Scott, director for global strategy with F&C, predicted that it was likely gold had come into its own again as a safe haven for investment after it saw a fall in the middle of the 20th century.
He suggested the ongoing strength of gold was dependent on the global economic markets stabilising over the coming year, with this situation likely to see the value of gold taking a sharp decline.
However, Mr Scott noted the full recovery of the economic markets in the space of a year was highly unlikely, which could mean gold will maintain its position as a safe haven for some time to come.
"As it becomes clear that the risk of currency debasement is rising the attraction of real assets will grow and within that category gold remains the best play. It should continue to be an integral part of a diversified portfolio," Mr Scott added.
Increasing exposure to gold was recently recommended by Michael Lally, director at Thesis Asset Management, who said that while there had recently been gold sales by hedge funds, this appears to be primarily for liquidity reasons.
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