There are lot more portfolio managers reporting that they own gold now than in the past. But global analyst Larry Jeddeloh tells us that most managers he talks to only own 2% to 3% of their portfolios in precious metals. Many are also first-time owners of gold, and he says it won't take much more momentum to nudge them toward a higher weighting. Note that while physical gold is trading near an all-time high, the miners in the Market Vectors Gold Miners ETF Index (NYSE: GDX) just failed to hold their high of October last year or double-top the March 2008 high. I don't think this is the end for gold miners, so just expect a decline to around $45 before another rally attempt is begun.
Those additions are likely due to follow-the-leader. It's further evidence that investment in gold, as a portfolio hedge, is becoming mainstreamed.