Central banks raising their purchases of precious metals – particularly gold – has been credited for some of the asset class’s standout performance in recent years. This came alongside an enormous rally in precious metals, with gold and silver rising 108.4% and 155.6% respectively over the past three years. Speculators, he argued, were treating precious metals as a “shiny new toy” to play on interest rate expectations, because they were a high-beta asset. Over the past three years, the FTSE World Precious Metals and Mining index is up 180.2%, while the wider FTSE All World is up just 65%. See also: Baker Steel appointed investment manager of Golden Prospect Precious Metals