Uncertainty brings glitter back to gold as a hedge against inflation

ON SPECIALIST MARKETS

BlackRock's Evy Hambro says the impact of quantitative easing and ongoing financial market uncertainty should continue to drive investors toward the gold market

Against the backdrop of uncertain financial markets and continued investor concerns over the prospect of inflation or deflation, gold has recently hit all-time highs in several currencies. Gold continues to benefit from strong demand, with investors viewing it as a hedge against medium-term inflationary pressures and potential dollar weakness. In addition, it provides important portfolio diversification benefits and an alternative store of value in the face of volatile currency markets. It is worth recalling during the past decade jewellery has been the largest component of demand, es...