Jittery fund managers cut gold exposure as volatility explodes
With the volatility in gold more extreme than bitcoin this month, red flags are emerging and forcing money managers to rethink their exposure to the metal.
As the historic rally in gold prices hit fever pitch last month, pushing the price well north of $US5000 an ounce, fund manager Vasilios Piperoglou was feeling uneasy.
The chief investment officer of Collins St Asset Management had already slashed the gold exposure of the firm’s flagship value fund six times in just six months. But the yellow metal’s explosive 24 per cent surge in January meant Collins St’s exposure had once again ballooned to uncomfortable levels, so Piperoglou sold some more shares.
