Global money management company BlackRock has issued a double warning about the benefits of holding on to gold – traditional sanctuary.
In addition, Rose Questrich, Black Rock’s portfolio manager for the Global Allocation Fund, said the bullion has proven to be an ineffective hedge against moves in other assets, such as stocks and inflation. Moreover, gold is dizzying as the global economic recovery accelerates.
Questrich said gold “fails as a tidal wave against equity”, indicating that the positive relationship with risky assets is strong compared to technology stocks. “Gold’s ability to escape inflation is, to some extent, very high. Although it’s been a fair value for a long time – think centuries ago – it’s less credible in most investment limits, ”Bloomberg commented.
Bullion lost steam in 2021 as recovery from the Pandemic accelerated further and increased treasury revenues, however the safe haven partially returned this week..
Although effective against the dollar, BlackRock believes that gold is not currently acting as a tide against equity moves or inflation risks..
“I would be short of gold in the absence of a strong outlook for the dollar,” Questrich wrote, noting that the precious metal still has a strong opposite relationship with the US currency. For investors who still want to invest, I address one word: money.
At 7:19 am in London, spot gold traded at $ 1734.57 per 17 yrs, down more than 8% this year, with the US currency index up nearly 2%.%.