Governments may ban private gold ownership - Hedge fund tycoon Crispin Odey
|A Bloomberg report quotes hedge fund tycoon Crispin Odey as saying that governments may ban private ownership of gold if they lose control of inflation.
Governments and central banks across the globe have launched unprecedented fiscal and monetary lifelines to help their respective economies contain the fallout from the coronavirus outbreak. Many economists are of the opinion that the trillions of dollars of liquidity that is being injected into the global economy would lead to a sharp rise in inflation.
Gold, a classic hedge against inflation, recently rose to 7.5-year highs near $1,765 and has already rallied by over 10% this year.
Key quotes
Its no surprise that people are buying gold.
The authorities may attempt at some point to de-monetize gold, making it illegal to own as a private individual.
They will only do this if they feel the need to create a stable unit of account for world trade.
History is filled with examples where rulers have, in moments of crisis, resorted to debasing the coinage.
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