Stock markets continue to fall, major companies collapse in the United States, technology shares are sliding, pensions and savings are in crisis.

And the falling dollar, though appreciated by fans of the euro, adds to economic uncertainty.

Add also the risk of war between India and Pakistan and it is no wonder the idea of gold investment is making a comeback.

A briefing in Money Week magazine confirmed prices had risen strongly for six months, driven by demand from investors in troubled economies like Japan and Argentina and by speculators.

Money Week said: "The gold price has remained above 300 US dollars an ounce for three months, a 20-year record, but it is still some way below its 1979 peak of just over 800 US dollars an ounce.

"Most analysts have raised forecasts in recent weeks, with some expecting a rise to 325 US dollars within six months and 350 US dollars by the end of next year."

Is this the time to buy gold?

Financial advisors are cautious.

David Hanratty, at Nelson Money Managers, said: "Gold funds in the Eighties were exceptionally volatile, soaring then crashing when the hype collapsed. Unless clients are multi-millionaires, we do not put them into gold."

John Hatherly, head of global analysis fund managers M&G, said gold had attractions when orthodox investments, particularly equities, were going nowhere. But he urged investors to be careful.

"Gold prices are up from 278 US dollars at the start of the year and may have further to go, so long as current nervousness remains.

"Gold shares are a very different story. They have raced ahead, probably to unsustainable levels and look like technology shares in February 2000 before the bubble burst."

Mr Hatherly said investors could buy gold bullion - kruggerands, sovereigns or gold sold in jewellery shops - as a small part of a portfolio or they might invest in the M&G Basic Fund, a well-diversified fund including various commodities besides gold.

Gold is strictly not an investment for widows and orphans or anyone who cannot take a loss. But it might have a small role for investors tired of equities and wary of the buy-to-let market.