Putting your money into condos in Vancouver, New York or London is a better investment than gold bullion, according to the head of the world’s biggest asset management company.
Bloomberg reported this week that Laurence D. Fink, chairman of BlackRock Inc., told a conference in Singapore that there was only one better bet than condos in those three markets – and that’s contemporary art, he claimed.
“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,” Fink told the Credit Suisse Global Megatrends Conference April 21.
“And two, the other store of wealth today is apartments in Manhattan, apartments in Vancouver, in London.”
In the past gold was seen as an excellent method of storing wealth that traditionally holds steady even through periods of conflict and inflation. But, since peaking at US$1,921.17 an ounce in 2011, the price of bullion has dropped about 38 per cent.
“Historically gold was a great instrument for storing of wealth,” said Fink. “Gold has lost its lustre and there's other mechanisms in which you can store wealth that are inflation-adjusted.”
He added, “It’s become much more accessible for global families worldwide to store wealth outside their country. And they don’t have to own gold.”