The allure of gold in an uncertain market has driven its price up precipitously in the past few years, to the point that many are speculating $1,000 an ounce is within reach. Is this the right time for you to move some of your investment into the metal?

According to John Hathaway of Toqueville Asset Management's Gold Fund, as interviewed by Barron's, gold still has a lot of upside. For investors looking for alternatives during the liquidity squeeze and nervous over the Fed rate cuts and its potential inflationary effect, gold offers an interesting opportunity. He believes that, if consumer confidence in the market continues to wane, gold could certainly reach $1,000 an ounce. He also makes the interesting observation that in 1980 the ratio of all gold ever mined to the sum value of all stocks and bonds was around 20%. The same ratio today is around 3%. Scarcity, therefore, works to support gold prices. Increasing environmental regulations, questionable governments and the growing costs of mining all suggest the metal will remain scarce for the foreseeable future.