Gold represents a wise investment to hedge against the lofty level of risk assets, says Matt McLennan, manager of First Eagle Global fund.

The S&P 500 stands within about 2 percent of its July 24 record high.

"The goal for us is to create an all-weather portfolio," he tells CNBC. "We're in an environment where risk assets are trading at rather elevated levels relative to history on the back of very easy policy."

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First Eagle Global is allocated 70 percent to stocks, 20 percent to cash and 10 percent to gold and gold miner stocks.

"We live in a world where there's too much debt and not enough jobs, and that's leading to financial repression everywhere," McLennan argues.

"And in a world of monetary abundance, we're looking for scarcity, be it in businesses that have hard-to-replicate assets or business models, or in gold itself as nature's alternative to the man-made financial architecture."

The fund has stakes in Gold Corp. and Gold Fields.

"Suffice to say if you think gold is an important part of the ballast of a portfolio, and if you can get it at a discount through the ownership of a gold miner, that makes sense," he notes.

Frank Holmes, CEO of U.S. Global Investors, is bullish on gold mining stocks too.

"Autumn is right around the corner, when the gold jewelry industry traditionally replenishes its stock. And with unrest in Ukraine and the Middle East continuing to drive the fear trade, as unfortunate as these events are, gold prices appear buoyant," he writes on Business Insider.

"This bodes well not only for investors in bullion but also mining companies, which will likely proceed with cost-cutting initiatives to maintain or expand margins."

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