It has been a tough couple of years for gold. The metal's price has dropped 30% from the record high it reached in the summer of 2011, providing ammunition for critics who say gold is too risky an investment because its price is too volatile and unpredictable.

Yet, gold enthusiasts are undaunted. They argue gold is an effective hedge against inflation and, despite its own volatility, it can help smooth out the overall volatility of a diversified investment portfolio. Some also see reasons for the price to rise significantly in the next few years.