Gold, either for short-term or long-term investing, is still be the best commodity for prospective investors.

But for those seeking a long-term investment, it makes sense to diversify into a basket of commodities as well.

"Historically, investors have allocated portions of their portfolios to real estate, inflation-linked bonds, gold, and instruments tracking a broad basket of commodities in an effort to preserve purchasing power in the event of an unexpected inflationary shock," ETF analyst Abraham Bailin said in Morningstar.

"Broad-basket commodity allocations have historically been the most reliable hedge against unexpected inflation."

Among all commodities, it is gold that investors most often turn to in times of panic, uncertainty and anxiety.

According to Bailin, gold is a better hedge against short-term fluctuations of the U.S. dollar than a broad basket of commodities, since a daily or weekly unit shift in the dollar's value has a more immediate effect on gold.

"But as we look to the longer, quarterly and annual, time frames, however, the broad basket provides a better hedge," he said.

There are no hard rules in investing either in gold or broad-basket commodities to ensure high returns.

"Your choice would depend on the length of your investment outlook," Balin said.

For the investor who has a wide, diversified portfolio of investments and is looking into long-term investing, Balin said the broad-basket approach works well. But for one planning to invest only over the short run, investing only in gold is a more effective instrument.