Investors Hoard Gold, Bitcoin and Whisky to Soothe Inflation Fear
Consumer price increases have been tame for years, but assets seen as hedges are hot again.
One lunchtime in 2009, as the U.S. Federal Reserve started purchasing Treasuries in the aftermath of the global financial crisis, Richard Hodges stepped out of his office to buy his first gold bar in the City of London.
Over the next decade, he built up his personal collection to several kilograms’ worth, stored in his “own little Bank of England basement.” Hodges, who also works as a money manager at Nomura Asset Management, thinks central banks’ stimulus has ushered in an “age of currency and asset price manipulation.” He’s betting that physical, tangible gold could retain its value if all of that goes wrong and paper assets crumple. “I even stack these little bars like they do in the movies,” he says.