Gold's 28 percent plunge last year and its 7 percent drop since March 14 this year haven't dulled the enthusiasm of Frank Holmes, CEO at U.S. Global Investors, for the precious metal.

"I remain committed to gold as a portfolio diversifier and advocate a modest, core 10 percent portfolio weighting in the precious metal (5 percent in gold stocks and 5 percent in gold bullion)," he told MarketWatch.

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"Another thing that many may not realize is gold’s normal volatility is 15 percent. Even a 30 percent swing either way is no reason to run away from the metal. This is normal."

June gold contracts traded at $1,292.70 an ounce late Friday morning on the Comex, down $2.30 from Thursday's settlement.

The most important factors driving gold are the "love trade" and the "fear trade," Holmes said.

"The love trade involves the cultural affinity for the precious metal, as we see purchases in line with religious and celebratory events, primarily in the Asian, and Middle Eastern cultures," he explained.

"The fear trade is when gold is purchased out of fear of political instability or poor government policy."

Ace investor Jim Rogers, chairman of Rogers Holdings, also believes in gold. The metal's correction from its 2011 record high isn't over yet, but it will represent an excellent investment for the long term, he told GoldSeek.

"There is going to be chaos out there over the next decade," Rogers said. "It could be a monetary disaster or even war. This turmoil could come from a gigantic debt problem, which could cause world economies to fall apart." And that's good for gold, he said.

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