Inflation threat prompts Scott's shine to gold

Investment week global forum report

F&C's Ted Scott has been buying gold stocks as a hedge against the increasing threat of inflation. ...

F&C's Ted Scott has been buying gold stocks as a hedge against the increasing threat of inflation. Scott believes a short-term inflation rise to 5%, 6% or 7% is a necessary evil in order to regenerate growth in the UK. "Mervyn King has already warned that the UK is likely to breach its 3% limit," he said. "I regard inflation as a key risk and have added a small basket of gold stocks to my UK Growth & Income fund to hedge against. "Precious metals is the best way to play this although I am not bullish on miners as a sector." Scott believes the UK will avoid recession but said a sha...