The chief investment officer of BlackRock, which is the world’s leading asset management firm, has recommended that investors hold gold to protect against upcoming economic turmoil.
Rick Reider issued the advice to investors amid expectations that central banks worldwide will soon have to initiate aggressive easing policies, thereby propelling debt yields into negative territory.
He said, “Despite the seemingly large size of monetary policy stimulus by historic standards, central banks have still only brought a knife to a gun fight. Real rates will definitionally need to be negative – and in fact more negative than the real rates of competitors. Ironically, the beggar-thy-neighbour implications of competitive devaluations will almost certainly incite a response from countries who may not originally even have needed to resort to currency debasement in the first place, raising the potential for full blown currency war. By definition, the worst asset to hold would be a sovereign bond with a negative yield, closely followed by paper money at zero yield, both with a theoretically infinite supply.”
As a global safe haven asset, gold is the perfect asset to hold in this scenario.
If you were waiting for an opportunity to buy Gold now is the time.