“People are moving to equities as it is the most remunerative asset,” said Jeffrey Sica, who helps oversee more than $1 billion as the president of SICA Wealth Management in Morristown, N.J. Sica said he cut his gold holdings to about 7 percent from 20 percent of assets on concern that the plunge may continue.
Billionaire investor George Soros, who called bullion the “ultimate asset bubble” in 2010, reduced his stake in the SPDR gold fund by 55 percent in the fourth quarter.
“Gold has somehow lost the safe-haven status,” said Robert Keck, the president of Princeton-based 6800 Capital LLC, which manages about $630 million. “A lot of money has definitely flown into equities this year. While the economic data may have some hits and misses, equities are being clearly preferred over gold.”