Bloomberg video/10-10-2016
MK note: Blackrock’s Heidi Richardson asserts that gold is an important component of modern portfolio construction. She says the bullish case for gold is intertwined with the global perception that danger looms in the global economy and that is why ETF holdings are again on the rise.
As reported here regularly, that same investor interest extends to owning the precious metals in physical form (coins and bullion) as well. In fact, owning gold and silver coins is often cited by experts as the better alternative for individual investors, as it is devoid of the risks associated with ETF-titled gold, i.e., logistical and liquidity concerns and counter-party risks in a very risky financial environment.
Heidi Richardson’s interview is interesting from another perspective: It demonstrates clearly that Blackrock has far from given up on gold after last week’s sharp correction.
