BlackRock’s Evy Hambro: Gold Still Offers Value Despite Record Prices
BlackRock’s Evy Hambro said gold remains fairly valued when measured against purchasing power, noting that miners are enjoying some of the strongest margins he has seen.
In a Bloomberg TV interview Tuesday, Hambro emphasized that gold’s worth depends on what it can buy rather than headline prices alone. While bullion now stretches further for everyday goods, it buys less of high-value items like U.S. pickup trucks or Manhattan real estate. This nuance, he argued, challenges claims that gold is overpriced.
Hambro highlighted a broader macro trend in which investors reassess real assets versus fiat currencies. “Momentum and speculative positioning can amplify short-term volatility, but the directional backdrop remains supportive for gold,” he said. If fiat currencies continue to weaken relative to real assets, gold “could go a lot higher.”
The purchasing-power lens also explains why sentiment appears contradictory: prices near all-time highs coexist with investors who see further upside potential.
On mining stocks, Hambro focused on fundamentals rather than forecasting outperformance. Margins at many miners remain historically high, while long-term internal price decks stay below current spot levels. If prices remain elevated, earnings and free cash flow could continue to exceed expectations, though volatility is part of the equation.
He also contrasted gold with silver, noting silver’s industrial exposure creates unique dynamics. Current lease-market tensions likely reflect supply constraints rather than mispricing.
At press time, gold traded at $4,202.60, up nearly 60% year-to-date, while bitcoin stood at $113,042, up 20% YTD, according to MarketWatch.
