Investments  

Fund managers' gold positions pay off during market fall

He said: "Some investors see gold as a stable unit of value when governments or central banks ‘print money’. This argument was interesting when QE was in full flood and gold was worth buying then, but since QE peaked it does nothing but fall in dollar terms.

"We have held cash when stock appeared expensive and have been buying growth stocks as they get thrown out on corrections like this. The results season particularly in the US has been strong and although growth will be slower next year than this especially trade with the disputes, good companies still grow well."

Tommy Garvey, who is part of the asset allocation committee at GMO said gold would never enter his thoughts as an investment.

He said: "We think the value of an investment is measured by the future returns it can achieve, not by how much you hope to be able to persuade someone else to pay for it in future."

Jonathan Davis, who runs Jonathan Davis Wealth Management in Hertford, said he expected inflation and interest rates to be much higher in the years ahead, and he was investing in commodities as a way to profit from this trend.

david.thorpe@ft.com