SINGAPORE (Oct 26): Mohamed El-Erian, chief economic adviser (CEA) at Allianz, thinks there are many more consequences of ultra-low interest rates that have yet to play out for investors, and that gold is increasingly part of the solution to mitigating such risks.

This is especially so as some 30% of global government debt is trading at negative yields compared to the past when a prolonged period of low and negative nominal interest rates were “once thought unlikely if not unthinkable”, says the former CEO of PIMCO.

In the autumn edition of Gold Investor, which was published by the World Gold Council in October, El-Erian explains why he would advise investors to hold bigger cash cushions as part of their risk-mitigation approach.

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