A Fool's Gold Play

I have written several times on RealMoney.com's about gold's role in a diversified portfolio.

My primary reason for owning gold is that over longer periods of time, it tends to have a low correlation to U.S. equities. It also tends to go up in the face of short-term crises, and this can serve to reduce a portfolio's volatility.

That gold has doubled in the past couple of years has provided a nice lift, although I did reduce exposure slightly in February as it grew into too big of a position for my comfort level.

The two well-known ETFs that correlate to the price of gold are streetTRACKS Gold (GLD Quote) and iShares Comex Gold Trust(IAU Quote). ...