Skip to content
Subscriber Only
Mark Gilbert

The Smart Money Doesn’t Like Stocks But Loves Gold

Sovereign funds are shunning equities and increasing their investments in the precious metal.

A safer bet?

A safer bet?

Photographer: Ulrich Baumgarten

Gold is up 25% this year and traded above $1,895 per ounce on Thursday, not far from the 2011 record high of $1,921. Meanwhile, global stocks, as measured by the MSCI World index, have recovered almost all of the losses they suffered as the pandemic ushered the world economy into lockdown, and are within 5% of regaining their February highs.

A look at where the smart money is going, though, suggests one of these rallies may prove unsustainable.