US hedge fund managers are buying gold anticipating that prices will be boosted by the effects of European governments' quantitative easing (QE) programmes.
Twenty out of 22 hedge fund managers interviewed by US firm Moonraker Fund Management say they are buying physical gold out of fear the QE programmes would fail and cause steep price rises. Should quantitative easing fail and we enter a deeper recession gold prices would rise as investors rush to purchase what is seen as a safe investment in times of deflation. Gold prices soared in the deflationary period in the 1930s. Moonraker chief invesment officer (CIO) Jeremy Charlesworth says: "Gold is the ultimate currency, performing best when economies are at extremes, whether that is infla...
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