The World Gold Council is promoting the benefits of investing in gold to consultants and public funds and will expand its efforts next year to encompass corporate plans. Pension funds have been gaining exposure through exchange-traded funds and commodities futures. During the first quarter of 2006, investment in gold ETFs was the strongest source of growth for the asset class, at 23%. "We've ran into several pension funds that already have a position in gold," said CEO Jim Burton, including Loews Corp.'s approximately $2.7 billion pension.

Since pension plans are traditionally slow to make changes, "We think it's going to be a three to five year effort," said Burton, who was previously ceo of the California Public Employees Retirement System. The council recommends a 2-8% allocation to gold. When talking to a pension fund, Burton emphasizes gold's lack of correlation to other asset classes, including various commodities. James Turk, founder of GoldMoney, a digital gold currency payment system, expects gold to draw increasing attention as it appreciates against the dollar. Gold has grown an average 13.5% per annum over the last five years. "Even though it has risen, gold is still undervalued," he said.