Now Would Be a Good Time to Invest in Commodities, Ex-Goldman CEO Says

  •  Ex-Goldman CEO doubts ‘never have inflationary pressure again’
  •  Says long time since gold, silver had role as store of value

It’s probably a good time to invest in commodities now when prices are lower, according to former Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein.

“From an inflation point of view, as an investor, I think investing in material sectors while they’re under-appreciated is not a bad thing now,” Blankfein said at the CME Group Inc.’s virtual metals briefing. “Everyone has decided that we’ll never have inflationary pressure again, oil prices will never go up again. I don’t think so.”
The Bloomberg Commodity Index is down almost 11% this year, compared with a 2.1% return for the MSCI World Index and 8.8% for iShares TIPS bond ETF.

Commodities underperform stocks and bonds this year
Blankfein’s comments echoed value investor Kopernik Global Investors LLC, which has has about $3.3 billion in asset under management. Its Kopernik Global All-Cap Fund is up about 23% this year, beating 97% of its peers, according to data compiled by Bloomberg.

Kopernik’s director of research, Alissa Corcoran, said that even though some short-term events such as demand destruction due to Covid-19 haven’t been positive, some commodities would likely see higher prices in the longer-term due to better supply-demand fundamentals.

Gold jumped to a record in early August and has soared almost 30% in 2020, as the coronavirus pandemic sparked a surge in demand for haven assets. Unprecedented economic stimulus from governments and central banks worldwide has also raised the specter of inflation, adding to the appeal of bullion.

Bloomberg.com

By Yvonne Yue Li and  Isis Almeida

September 16, 2020, 7:10 AM PDTUpdated on September 16, 2020, 4:00 PM PDT

Related Post

EDUCATION BEFORE INVESTING

Learn How A Precious Metals IRA Can Secure Your Retirement

The precious metals market may seem intimidating, but it’s not as it seems. Our team has compiled a summary of our tips and information into a free guide so you can learn how to begin securing your future.

TALK TO AN IRA ACCOUNT MANAGER

We Will Guide You Every Step Of The Way

Schedule a Call
Learn Why Everyone Should Own Real Gold & SilverRequest Your Free Step-By-Step Investment Guide

"*" indicates required fields

Name*
I'm interested in (please select all that apply):
Hidden
This field is for validation purposes and should be left unchanged.

Inside this Free Investment Guide

  • How a Gold IRA Gives You Full Control.
  • How You Can Grow Your Retirement.
  • How to Open a Gold IRA Tax & Penalty Free.

Disclaimer

By clicking the button above, you agree to our Privacy Policy and Terms of Service and authorize Oxford Gold or someone acting on its behalf to contact you by text message, ringless voicemail, or on a recorded line at any telephone or mobile number you provide using automated telephone technology, including auto-dialers, for marketing purposes. No purchase required. Message and data rates may apply. You also agree to receive e-mail marketing from Oxford Gold, our affiliated companies, and third-party advertisers. To opt-out at any time click here or reply STOP to opt-out of text messages.