No Chance Gold Values Will Recapture Their Peak Anytime Soon

The question on the mind of many analysts is whether or not gold is the kind of non-correlated, alternative asset that investors should be holding now. Especially when they stop to consider gold's roller coaster track record that includes soaring prices from 2004 to 2011, and then the sharp drop of more than 40 percent in 2013.

For hundreds of years, gold has been an asset that is held as protection against "worst possible outcomes." The truth be told, gold will reach its highest price when there are increasing concerns about the economic well-being of the United States, likely because the U.S. represents the biggest economy and largest pool of wealth in the world and investors want a good investment to preserve their wealth. That being said, the American federal government has appeared more effective as of late and even the housing market in the United States has shown real signs of improvement. These things considered, investors are left without the worries that traditionally drive values upward. Recently, gold prices have slid back from an early 2014 climb and now stand just a few percentage points higher for the year.

With the rising number of alternative investment strategies for investors to pursue, analysts are growing skeptical of whether including gold as an asset class will benefit investors. In fact, some are even suggesting that "it’s not an ideal hedge" anymore and that "there’s no chance that gold prices will recapture their peak anytime soon."