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Gold Bubble "Could Pop", Buy Oil Instead: Strategist

The fundamental outlook on gold remains gloomy, said Roman Scott, manager director of Calamander Capital, warning that we're in a bubble that "could pop".

"I think there is a sort of mini bull market that could potentially be a bit of a bubble in gold," Scott said on CNBC's Protect Your Wealth.

"I find it difficult to argue for a long and slow recovery in the global economy," he added. "I still lean to short-term deflationary risks in the economy than inflation, and gold is the ultimate inflation hedge," he added.

Gold has been performing as an asset and is subjected to speculative forces rather than fundmental forces in inflation hedging, Scott observed, cautioning "that could pop."

Scott, however, said he was bullish on 'fundamental commodities', such as soft commodities and oil.

"Oil is based on fundamentals," he noted. "Any which way we look at supply and new finds - it is insufficient to make up for the decline in the major fields around the world. Most of these big announcements, stuff found in Brazil and Gulf of Mexico don't really cut it. The Canadian oil sands remain uneconomic at prices much less than $90/bbl."

Energy, Scott continued, is the best long term proper supply constraint and has the best fundamentals.

Likewise for real estate as he said it remains one of the "best real assets".

"I know they've taken a hammering and we like going into things when prices are cheap -- you buy low rather than buy high. The same thing for art."

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Catch "Protect Your Wealth" on CNBC's Asia Pacific network every Tuesday on "CNBC's Cash Flow," Wednesday on "Asia Squawk Box" and Thursday on "Capital Connection."