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Conditions for gold rally could crush other assets

HONG KONG (MarketWatch) -- Several analysts predict a rise in gold prices to dizzying heights in the next two years, but if those forecasts prove true, even gold bugs will need to stay alert to ensure that gains in the metal aren't overwhelmed by losses on other parts of their portfolio.

That's because the economic conditions under which one would expect gold to thrive resemble an investor's nightmare -- possible hyperinflation, collapse of the U.S. dollar or a surge in yields on Treasurys -- may be conditions under which other asset classes such as fixed income and equities could take a major hit.

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