Taking expensive camera gear to a South America trip?

I spent 3 weeks in Peru last year, mostly in Lima, Cusco and the Sacred Valley, and Colca Canyon and Arequipa. Among our fancier possessions, I had a Canon camera with me and my husband had an Asus laptop. We're not physically intimidating people by any means (I'm just 5'2"), but I think we also carry ourselves confidently when we travel (e.g. no looking at maps in the middle of the street). We had no problems and no thefts in Peru (nor any during a year of travel we did a few years ago), though we are very aware of where our bags and belongings are at all times.

I'm from Peru, and I have to tell you that it is dangerous to bring such an expensive camera. However not all the zones are dangerous. I suggest you try to keep it hidden while you are in the city because most of the thieves always check on the foreigners. Some tips to avoid these dangerous situations is that you hire a taxi from the hotel to transport you, to buy tours around the city that usually go with a guide (stay with the group) and try to not walk in crowded streets in the city.

I live in Bolivia.

Yes there is always a risk when it comes to carrying around expensive camera equipment. There are risks in other countries as in the United States etc etc.

Some good ideas are:

• Consider buying an older, used DSLR and leaving your nice one at
  home. Use a camera bag that doesn't scream "photographer."

• Be careful where you leave your stuff.

• Don't leave anything in hotel rooms when you have to step out.

• Get travelers insurance.

• Watch your back.

I don't have experience with that, although I know a blogger who does. He is writing:

According to the inhabitants of Quito, Guayaquil, Lima, Trujillo and Arequipa, nearly every corner of their city is dangerous

Almost everywhere, locals advise us to be careful, because it is “peligro”, especially with a camera

You can read the whole blog entry here.

I've been to Bolivia twice and there are many photo opportunities in the country. I've only taken inexpensive cameras I could carry out of sight in my pants front pocket because of the possibility of theft. Keep your valuables with you at all times and secure. You are more vulnerable as a foreigner but even native Bolivians are not entirely safe. I have a friend who has lived there her entire life and the bottom was cut out of her purse and her Canon DSLR was stolen while walking down a street. Like the other comments, some places are better than others.