NEW YORK (TheStreet) -- After the worst year of performance in recent decades, gold prices are finally getting some love in 2014.
David Mazza, head of ETF investment strategy at State Street, told TheStreet's Gregg Greenberg gold prices were pushed around in 2013 by a number of different factors, included fears over a Chinese economic slowdown and investors guessing on when the Federal Reserve would alter its monetary policy.
Gold prices are slightly higher on Friday and are up roughly 5% on the year. Despite the economy having a solid footing and the Fed beginning to slow its asset-purchasing program, we still don't have the "all clear," Mazza said. It's just one reason why owning gold still makes sense.
Gold miners generally outperform the yellow metal, both to the upside and the downside. When asked which asset he'd rather invest in, he said he preferred bullion to the miners.
For starters, gold miners are equities, or stocks. They are subject to other market forces that may affect them negatively going forward, he argued.
Mazza concluded that he likes physical gold for some of its more well-known attributes, such as its low correlation to stocks and bonds, stability and portfolio diversification.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts