Odey says that gold is a great way to protect your wealth from the inflation that central banks won't be able to control as they continue to print money.

"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.

"It is no surprise that people are buying gold. But 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," he added according to a report by Market Watch.

Bloomberg News said that the fear of government confiscation of gold is often discussed among serious gold bugs. It happened in the U.S. in 1933.