According to Mauldin, the steady rise in gold over the last eight years to the current level of just over $1000 has roughly tracked the emergence of China as a superpower in foreign reserve holdings, which now stand at $2-trillion.

With the uncertainty regarding the sustainability of the current improvement in the global economy and the recent strong rally in global stock markets, Du Plessis believes an investment portfolio should include exposure to gold. He agrees with Richard Russell: "Gold is the standard; it can't go bankrupt, it will rise in value if the dollar tanks or inflation takes off, and it will sky-rocket if the US tries to inflate its debts away."

Investors could gain gold exposure by buying the JSE-listed gold ETF NewGold, which effectively represents an investment in gold in rand terms. "Although a strong rand may negate some of the potential returns from a higher dollar gold price, this holding will provide some hedge against the current uncertainty," says Du Plessis.

Alternatively investors could buy a combination of gold shares or invest in a gold fund. "Keep in mind that gold shares are highly geared and thus tend to show more volatility than the gold price. Also, problems with regard to poor management of mines, such as safety aspects and strikes, could also affect profitability and your investment return," says Du Plessis.

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