Rupert Robinson, CEO of Schroders Private Bank, gives his view on the prospects for gold and gold equities.

All the ingredients are in place for a bull run in gold and gold stocks. The dollar is beginning to wobble, US treasuries are under pressure on fears of downgrades and mounting deficits, and inflation is set to rise.
 
But regardless of your outlook for the economy, gold is a great each-way bet. It is an investment that works as well in an inflationary environment as a deflationary one – with bullion, it’s “heads you win, tails you win”.
 
Precious metals like gold and silver will rise whether or not central banks are successful in reflating the economy. If the market believes inflation will return, long-term interest rates will rise, the US dollar will fall and gold and precious metal stocks will surge. If deflationary fears resurface, gold bullion will rise as investors run for cover and seek maximum security for their money.