BlackRock shocks gold and Bitcoin, as they recover By Investing.com

Investing.com – As bitcoin recovers from sizable losses in the past few hours, it seems the world’s largest asset management fund doesn’t want gold or particularly like bitcoin, but prefers them. of them.

Philip Held Brand, vice president of BlackRock, which manages more than $ 9 trillion in assets, says gold and bitcoin can’t beat cash.

walk now

After record losses incurred by the safe haven over the past week, reaching nearly $ 50, it looks like gold has appeared to consolidate in the past few hours.

And the immediate delivery price of an ounce of gold rose during those listing times today, Monday, by around $ 15, reaching levels of $ 1,766, an increase of around 0.9%. .

On the other hand, he reduced a small portion of his losses, as he recovered the levels of $ 43,000, after being seen at levels of $ 42.6,000.

Bitcoin is trading during these times at levels of $ 43.8 thousand, down 8% in 24 hours.

Criticism is better

The former head of the Swiss central bank believes that any rate hike by the Fed will not happen until 2023 at the earliest.

When asked during a virtual session of the Bullion Market Association in London, the vice chairman of the BlackRock board of directors if he would prefer $ 10,000 in cash, bullion or bitcoin, the former governor of the Swiss National Bank chose the US currency.

According to central banks which tolerate price overruns and high inflation, inflation could stabilize at around 3% or slightly above “for a while” after the current recovery caused by supply chain disruptions , said Hildebrand.

Hildebrand added: “We will not have inflation at 5%, 6% or 7%, but I have no doubts that inflation will increase. We are in a higher inflation regime than we have been. over the past decade. “

“The world’s efforts to tackle climate change will contribute to higher inflation due to the costs of green production, but I don’t expect the Fed to raise interest rates until 2023 at the earliest,” the European Central Bank tightening its policy after that. Said Hildebrand.

zero gold

A few days ago, Ross Koestrich, fund manager at BlackRock, decided to sell almost all of his gold holdings, hoping that real interest rates would return to normal as the global economy recovers.

“Four months ago we had a large investment position in gold, today we have reduced it to almost zero,” Questrich said.

It is down about 15% from last year’s high due to the outlook for monetary tightening.

“If part of our view is that real interest rates tend to normalize a bit, then gold is unlikely to perform as well as it did in mid-2020,” he said. -he adds.

Gold prices have fallen more than 8% since the start of this year, after hitting a record high last year, supported by the fallout from the Corona outbreak and accommodative monetary policy.

“Instead of owning an asset that produces no cash flow, we prefer to hedge against the possibility of accelerating inflation in the short term with stocks that have pricing power, such as sectors of the economy. manufacturing, raw materials and consumption, ”said Koestrich.