Inflation, banking crisis, and a weakening US dollar are putting gold under the spotlight. AsianInvestor asks asset managers if gold prices have hit a peak or if there is more room for prices to rise.
The life insurer has a diversified hedging toolbox ranging from real assets to derivatives. These tools provide long-term, non-guaranteed benefits to policyholders as inflation, or even stagflation, is now looming.
Some analysts remain bearish on gold, believing that energy, industrial metals or real estate would be a better hedge, while others think the metal is now trading at an attractive rate.
Gold is the second most popular inflation hedge, while few retail investors in Asia make much use of inflation-linked bonds, say wealth managers polled by Barclays Capital.
Portfolio manager Andrew Karsh also argues that commodity investors should buy baskets for diversification and to mitigate the volatility of individual markets such as oil or wheat.
The firm has also listed four exchange-traded funds in Singapore, including the first in Asia to track US and European sovereign bonds and US inflation-linked bonds.
Asian institutions are increasingly looking at inflation-linked investments, says Ralph Segreti, global head of inflation-linked products at Barclays Capital.