Billionaires & Central Banks Bet Big on Gold Amid Inflation Fears

Some of the world's biggest money managers have rebuilt their gold holdings after prices dropped, betting that long-term drivers of the precious metal will endure even as the US Federal Reserve takes a more assertive stance on inflation.

The fund managers at Amundi SA, Pictet Asset Management Ltd., Robeco Institutional Asset Management BV, and Fidelity International Ltd. added to their gold holdings, citing its value as a hedge within a broader investment portfolio.

Lorenzo Portelli, head of cross-asset strategy at the Amundi Investment Institute, said that gold is 'an asset that we consider to be cheap' but that greater visibility over the Fed's interest-rate path would be needed before the firm would consider adding to last month's purchases.

The asset managers interviewed by Bloomberg News believe that gold's enduring appeal lies in its value as a hedge within a broader investment portfolio, and that it is becoming more acceptable as an asset class.