With gold performance often hit or miss, fund managers who focus on this commodity face challenges marketing through the ups and downs.

The World Gold Council, which sponsors a family of exchange-traded funds called the SPDR Gold Shares, recently issued a whitepaper concluding that gold allocation should measure between 2% and 10% for a wide range of investor portfolios "depending on individual risk appetites." William Rhind, managing director and head of institutional investment at the World Gold Council, says there was strong gold demand in China and India during 2013 with the same happening in the U.S. and Western Europe early in 2014. Rhind, who leads gold investment activities focused on institutional investors, says two points he tries to emphasize to investment managers on the advantages of including gold in portfolios are that it helps increase purchasing power and as well as boosting diversification.

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