Barrick Gold CEO Take on Gold and Emerging Economies

EDITOR NOTE: There’s been volatility in the gold market recently. However, Barrick Gold CEO Mark Bristow joined CNBC to explain why that’s not a problem. He reminded viewers that gold is a long-term play and also said that the short-term unpredictability is coming from the fact that all markets are trying to figure out “how to position investments on the back of the unforeseen and unrealized damage of how the pandemic crisis was managed.” When asked if crypto is stealing gold's thunder in 2021, Bristow assured people that, despite recent days, gold is a stabilizer while crypto is incredibly erratic. Crypto and gold do have something in common, though, according to Bristow. The current enthusiasm for both demonstrates that "no one believes in the fiat currencies anymore and everyone's desperate" to protect themselves from coming inflation or a crash with these types of alternatives. This desperation rings especially true in emerging economies and the developing world, which is a dire sign for the global economy. 

Following the overnight chaos in the precious metals markets, Barrick Gold CEO Mark Bristow appeared on CNBC to remind investors that "this is a long-term business," adding that "gold prices go down and they go up and sometimes not in that order."

"Fundamentally," Bristow remarked,

"this world is battling with how to position investments on the back of the unforeseen and unrealized damage of how the pandemic crisis was managed... and the impact it had on the global economy which really hasn't materialized yet."

Asked on crypto adoption and whether it is stealing mind share from the barbarous relic, Bristow says "there's no comparison with gold," pointing out that unlike crypto, "gold acts as a stabilizer against volatility in a portfolio while the deltas in crypto are enormous."

"The critical thing," the Barrick CEO notes, "is that you can't just create value... and what you are really buying [with crypto] is energy."

But what the rise in crypto and gold is telling us, Bristow warns is that:

"no one believes in the fiat currencies any more and everyone's desperate" to find alternatives.

"There's a lot of money washing around in the hands of people that did not lose their jobs."

"The whole issue here is that everyone wants instant gratification, everyone's already concerned about how you store your [wealth] that you've seen grow in the developed worlds."

"The emerging and developing world's economies are in dire straits."

Circling back, Bristow notes that the current weakness in gold is an opportunity:

"Without a doubt, this is a buying opportunity and you still need a 5% or so part of your investments in gold."

Watch the full interview below:

Original post from Zero Hedge