NEW YORK (TheStreet) -- Gold has performed poorly in 2013, down over 25%. But according to Kevin Quigg, global head of strategy at State Street, that doesn't mean investors should give up on it.
He reminded TheStreet's Joe Deaux that the SPDR Gold Trust ETF (GLD) is backed by physical gold, held in a vault in London, making it safe for investors to own.
Turning to gold prices, he said the typical seasonal buying that drives demand has not presented itself yet. Usually now is a good time for gold prices because of the Indian wedding season, Christmas, the Chinese New Year and Valentine's Day.
The new restrictions from the Indian government have dramatically curbed gold sales in the country and it is not known if the rest of the season's strength with compensate for the lower demand.
However, Quigg suggested there are several positive factors to consider: central banks buying gold, inflation, currency uncertainty and higher manufacturing. He added that with equities up big in 2013 and gold down heavily, it might be a good time for investors to consider allocating part of their portfolio to the yellow metal.Quigg concluded that a 4% to 10% portfolio allocation to gold has proven to lower volatility and increase performance. He added that going into 2014 there will likely be more uncertainty than many market participants are currently expecting. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell