For years, a common rule of thumb for asset allocation was a 60/40 split: 60% in equities and 40% in bonds. But with the yields on bonds at record lows, this allocation strategy is no longer sound.

In Japan and Europe, the yields on two-year bonds are negative. In Australia, the yield is just 0.26%, as the RBA is intentionally keeping the yield low as part of their quantitative easing plan.

With yields so low, investors are no longer getting the same benefits from holding debt as they once did. So what’s the alternative?

Some wealth managers are turning to gold. Gold does not pay regular income, but it does act as a hedge against inflation since it is a limited resource.

Ben Cleary of Tribeca Investment Partners said that “There are always outliers and funds doing their own thing, but the industry tends to follow one another and you might well be looking at a new consensus model that includes a lot higher level of gold.”

Private high net worth individuals are looking at gold, pension funds are looking at gold, and institutional investors are looking at gold. The direction of the wind is changing – but for how long?