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Key Words: Stashing some gold? Here’s why that could soon be illegal, according to one notable hedge-fund bear

“History is filled with examples where rulers have, in moments of crisis, resorted to debasing the coinage,” said Odey, who has raised his gold position in his flagship Odey European fund all the way up to 39.9% as of the beginning of the month from 15.9% at the end of March.

The fund cashed in on the initial market crash with a 21% surge in March, according to the letter. It dropped 9.5% in April as investors warmed back up to a risk-on approach.

Fear of government confiscation, as Bloomberg News explained, is often discussed among serious gold bugs — it happened in the U.S. in 1933 — but with major currencies no longer linked to gold, there are no signs such a move is realistically even being considered by central banks.

Odey said he expects the powers-that-be to fight rising inflation — and lose — as rates climb as high as 15% within 15 months to weigh heavily on bonds and growth stocks.

As for Wednesday’s trade, gold prices GC00, -0.04% settled higher for a second session, as economic stimulus measures boosted demand for the precious metal against the backdrop of economies attempting to reopen from the COVID-19 pandemic.

Stocks also gained ground, with the Dow Jones Industrial Average DJIA, -0.03% , Nasdaq Composite COMP, +0.42% and S&P 500 SPX, +0.23% all firmly higher.

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