Historically, investors have called the dollar index, United States treasury bonds, and even gold the main safe havens in the global economy when and if trouble arises. However, this common knowledge has attracted many buyers positioning themselves in these areas ahead of what could turn out to be a volatile stock market.

Bank of America strategists see 11% upside for gold by the end of next year as the Treasurys are threatened by soaring US debt levels.

Gold at record highs as investors flock to it as safe haven asset amid rising inflation expectations and Fed's policy shifts.

Also gazing at the gold stuff is Bank of America, which in a note today posed the question “Is gold a safer investment than Treasuries?”. Their most immediately relevant finding is that — after a long period of gains driven by Chinese demand — this is now a Western-led rally:

"Indeed, rising funding needs, debt servicing costs and concerns over the sustainability of fiscal policy may well mean that gold prices could increase, if rates move up."

Bank of America warns that gold may be the last true safe haven as the U.S. national debt climbs to unprecedented levels, casting doubt on the stability of traditional assets like Treasury bonds.