Rathbones' Coombs takes a 'grudging' position in gold for first time in six years

Boosting holdings amid UK doubts

David Coombs, head of multi-asset investments at Rathbone Investment Management, has started building a position in gold across his multi-asset portfolio fund range for the first time since 2011 as protection against what he feels is an increasing likelihood of a UK recession.

The manager has been vocal in recent years on his aversion to gold as he believes it is a "purely sentiment-based" asset that is difficult to value. However, he has been buying up the asset class as his caution on the UK increases. "I find it hard to invest in something I cannot value and so the only time I would is as a hedge," he said. "Last year we were nervous about stagflation in the UK and our core view was the UK could go into a recession. Gold is a stagflationary hedge," he said. IW podcast: The big global risks keeping investors awake at night Coombs took out a small po...