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BlackRock would rather hold cash than gold or bitcoin

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(Kitco News) - As reported last week, BlackRock fund manager Russ Koesterich told Bloomberg TV he's sold almost all of his gold holdings on expectations that real rates will normalize as the global economy rebounds. This time round BlackRock's Vice Chairman Philipp Hildebrand said "you just can't beat good old-fashioned cash" when ask about gold and Bitcoin.

He was asked on a virtual London Bullion Market Association (LBMA) panel if he would rather be given $10,000 in cash, bullion, or Bitcoin and the former Swiss National Bank governor opted for the greenback. Bitcoin is trading at about $43,470, roughly 25 times the cost of an ounce of gold.

Hildebrand told the panel that much of the outlook for gold depends on how consumer prices fare and the Federal Reserve's timeline for curbing stimulus. Inflation could settle around 3% or a bit higher for "some time" after the current spike caused by snarled supply chains abates, citing central banks tolerating price overshoots.

He added "We aren't going to have 5%, 6%, 7% inflation, but I am convinced that inflation will trend higher," he said. "We are in a higher inflation regime than we have been in for the last decade."

He spoke about the timing of rate rises and said he doesn't expect the Fed to raise rates until 2023 at the earliest, with the European Central Bank tightening policy after that.

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