Dubai: With so many gold bulls, it becomes difficult to find an asset manager, who has near to nil exposure in gold.
Swiss asset manager, Lombard Odier, with $220 billion (Dh807.4 billion) of assets under management, is preferring not to take any bets on the yellow metal.
“The attractiveness of gold will get diminished as real rates in the US stops. The resilience of the US economy is higher, so the reason to be uncertain is lower, so the real reason to own gold is less compelling. We don’t foresee inflation, so there is no added value to buy gold,” Patrick Odier, senior partner at Lombard Odier told Gulf News, who was in Dubai last week.
“We are not taking that bet from a risk point of view. We don’t recommend adding gold to your portfolio. The price of gold is extremely difficult to predict. The evolution of the price of gold in the past years has been quite coherent. If markets correct now, gold should not benefit more than it has done in the past. We don’t see a huge impact at this point of time,” Odier said.
Lombard Odier has been neutral gold in the recent past. Odier feels that compared to the 1990s and 2000s, when gold was the only place to be protected against the vagaries, there are many instruments that are available in which investors can seek refuge.
