BlackRock CEO Larry Fink says that contemporary art and luxury apartments are the new gold.
A report from Bloomberg on Tuesday cites comments from Fink at a recent conference in Singapore where the executive said, “The two greatest stores of wealth internationally today is contemporary art… and I don’t mean that as a joke, I mean that as a serious asset class. And two, the other store of wealth today is apartments in Manhattan, apartments in Vancouver, in London.”
Fink added that, “Historically gold was a great instrument for storing of wealth… Gold has lost its lustre and there’s other mechanisms in which you can store wealth that are inflation-adjusted.”
So, brutal news for gold bugs.
Since the world has mostly abandoned currencies backed by gold or other metals, gold bugs — or the enthusiastic supporters of the precious metal — have seen owning gold as a hedge against inflation (or hyperinflation). Buying gold became a particularly popular trade following the financial crisis and central bank policies that many feared would lead to hyperinflation.
This has, so far, not been the case.
Over the last couple years gold prices have been under pressure, with some analysts saying that gold is at the end of its commodity “supercycle” and could fall to $US660 an ounce.
On Tuesday morning, gold prices were around $US1200 an ounce.