Reuters reports that investors are hoarding gold and cash as a perfect storm brews in global equities and credit markets.
Volatile equity markets coupled with the growing risk of sovereign bond default are sparking a rush to defensive assets, fund managers and investment strategists said, with little sign of sanctuary seen in any major global economy.
In an environment where people are "simply looking for the least ugly investment," gold offers a way to preserve purchasing power in the face of market stress and high inflation, said Neil Dwane, chief investment officer at RCM, a unit of Allianz Global Investors.
"It feels like Europe is firmly in the line of fire but it could quite easily be usurped by worries over the U.S. by the end of the week," he said, flagging doubts about the optimism underpinning Asian investment as a hedge on Western woe…..
Read more at http://www.reuters.com/article/2011/07/19/us-investors-defence-idUSTRE76I2LN20110719
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