He warned that investors should not hold more than 5% of their portfolios as gold.
Despite research showing a dramatic increase in savers investing their pensions in gold, Cox believes “the number of people is still relatively small”.
He said that although the commodity can be used to “hedge” against calamity; supply and demand issues can put pressure on the gold price to be unpredictable in the aftermath of a financial crisis.
“Investors need to understand investing in gold is by no means a one way bet. Gold is notoriously difficult to value, subject to seasonal demand, and unlike shares and bonds, it provides no income for investors,” he said
Between 2000 and 2011, the price of gold rose dramatically, from $287 an ounce to $1,837.
However, it has since fallen back to $1,253.
“Given an improving economic outlook and the prospects of interest rate rises in the US and UK getting closer, it is hard to see how gold gains many more followers from here, unless economies and central bank policies go into reverse,” said Cox.
