KITCO NEWS - A long time neutral voice in the gold industry has turned noticeably bullish. Jeff Christian, managing director for New York-based research consultancy CPM Group says gold is headed much higher in the next three years. "We thought gold would find a bottom in 2015 and that by 2020 we could see gold set a new record gold price in nominal terms, above $1,700 an ounce."

On Tuesday, gold prices were tempered after the metal scored a 12-month high last Friday. December Comex gold was last down $3.50 an ounce at $1,332.20. Christian adds that his firm conducted extensive research around the ideal gold allocation in today's world.

 Since the early 1980s, most portfolio managers allocated a 5-10% holding in gold. This model, Christian says, had not been updated in years. "Given everything that is happening, in terms of risk reward, it is now 27-30%."

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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.