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Friday, 31st July 2009 (1529 views)

Hedge fund managers in the United States are increasingly looking to invest in gold as a way of insulating their personal assets against inflation.

London-based investment management firm Moonraker said a poll of 22 fund managers found that 20 had bought physical gold for personal investment reasons amid concerns that the White House's quantitative easing programme could trigger high inflation.

The firm's chief investment officer Jeremy Charlesworth said gold was seen as a safe haven by the fund specialists because if quantitative easing - which involves increasing the money supply in a bid to kick-start the economy - backfires, then "the value of money relative to real assets will dwindle".

"Gold is the ultimate currency, performing best when economies are at extremes, whether that is inflationary or deflationary," he added.

According to Mr Charlesworth, there is a "very real possibility" that US inflation could reach double-digits over the next two to three years.

 

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