With the volatility of stocks continuing, gold has outperformed the market over the last several years. Gold has been on a run over the past six months, reaching all time highs, and one wonders if now is the time to cut back on positions.

Gold is traditionally thought of as a hedge against uncertainty and the situation right now in the world is most certainly that. Gold has never gone down to zero and that is a lot more than can be said for stocks, many of which have gone down an amazing amount. For anyone who has invested in gold, they must feel fortunate to have their money in something that has done so well.

People with funds to invest must make decisions that are becoming increasingly difficult in today's extremely weak economy. It is not easy to find an investment vehicle that is really safe and provides a reasonable return. The rates of interest being paid on government guaranteed treasury bills or bank certificates of deposit are about as low as they can go. Further, it is a matter of debate as to the safety factor of any government-backed investment since it is technically bankrupt.

Gold has been seen as safe but at these high prices you have to be careful not to be investing your money at the top. Just like stocks, gold has experienced big drops over time and that could happen again here. Just because it has always recovered from any dips is no guarantee that it is totally safe.

Professional investors usually recommend you have a portion of your money in stocks, gold, and other investment vehicles so that your risk is spread out. This helps protect you from having too much in one thing and gives you diversity in case one of your investment choices goes down. Gold can be part of your portfolio, just not the whole thing!