Investors should switch from gold miners to bullion because the asset provides a stable alternative to currencies and a buffer against ongoing economic uncertainty, says Barings.
The call comes as the commodity hits an all-time high, breaking through $1,000 an ounce.
Percival Stanion, head of asset allocation at Barings, says gold offers better prospects than paper currencies such as the sterling, euro and dollar.
Furthermore, he believes the rally in UK and European equities could prove to be a false dawn built on unstable economic foundations.
"In our view, gold is a more stable store of value, over a five year view, than all paper currencies except the renminbi," says Stanion. "Sterling is our least favoured currency, even after significant falls in value."
He says ongoing turbulence in the European banking sector, coupled with concerns over the continent's growth prospects, count against equities.
"Now we have benefited from the UK equity value, we are largely moving away from European stocks, due to concerns about a lack of transparency in the banking sector, compared to Anglo-Saxon companies."
Stanion concludes the global economy remains fragile and the recovery cold be a drawn-out affair.
"The global economic recovery is looking sub-par due to the indebtedness in the UK, US, and some parts of Western Europe.
"There is going to be a speed limit on growth in the West as final demand weakens, in part due to the explosion of government debt, which will surely result in revenue raising measures."
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