Now is the time for gold, silver to shine – former Goldman Sachs CEO
Now is the time for gold, silver to shine – former Goldman Sachs CEO by Neils Christensen for KitCo News
In a virtual fireside chat with CME Group, the famed banking executive and commodity trader acknowledged gold and silver ’s impressive run so far this year. However, he added that he genuinely did not know what is in store for the precious metals as prices continue to grind in a consolidation phase.
“It has been so long since these metals have played a role in financial markets store of value,” he said. “But if there was ever a time where they would, it would be now.”
Blankfein said that generally he is bullish on commodities as he sees the risk of rising inflation as the Federal Reserve has signaled that it is not going to raise interest rates anytime soon.
“I think from an inflation point of view, everyone has decided that we won ’t see inflation ever again,” he said. “I just don ’t see that. From an investors point of view it ’s not a bad idea to invest in physical assets.”
Although inflation isn ’t a threat for now, Blankfein said that sentiment can shift in an instant.
Adding to the inflation picture, Blankfein said helping to keep interest rates low will be the massive deficits governments will have to deal with. He added that whichever party gets elected after the November 3 general and presidential elections, any government will have to deal with massive debt.
He added that he wouldn ’t rule out further deficit spending from any government.
“Because of these low interest rates deficits can go higher,” he said.