Gold Passes Purchasing-Power Valuation, Says BlackRock’s Evy Hambro

BlackRock’s Evy Hambro: Gold Remains Undervalued Despite Record Prices

BlackRock’s Evy Hambro told Bloomberg TV that gold “could go a lot higher” as long-term internal price assumptions still lag the current spot price, while miners’ profit margins remain historically strong.

Hambro challenged the notion that gold is overpriced by focusing on what the metal can actually buy rather than its headline value. In a Tuesday interview, he noted that gold stretches further for everyday goods but buys less of high-ticket items like mainstream U.S. pickups or prime Manhattan real estate. This, he said, undermines blanket claims of overvaluation and highlights the importance of the basket used for comparison.

He framed gold’s performance within a macroeconomic shift, where investors are reassessing real assets relative to paper currency. While short-term volatility can be amplified by speculative flows — “the trend is your friend” — Hambro said the broader backdrop supports continued upside for bullion. If fiat currencies are repriced relative to real assets, he believes gold “could go a lot higher.”

The purchasing-power perspective also explains why sentiment seems contradictory: prices near record highs coexist with investors who still see potential for further gains. Gold has maintained or even improved purchasing power for everyday items while falling behind on luxury goods, suggesting no single valuation metric captures the full picture.

Hambro also highlighted the distinction between gold and bitcoin. Both are influenced by inflation, currency debasement, and portfolio hedging, but adoption paths and risk profiles differ.

On miners, Hambro focused on fundamentals rather than issuing a direct call on stock outperformance. He observed that miners’ margins are among the strongest of his career, while analysts’ long-term gold price assumptions remain below spot and even below the forward curve. If spot prices persist while analysts raise assumptions slowly, earnings and free cash flow could surprise, though volatility will remain.

He also contrasted gold with silver, noting silver’s industrial demand introduces unique dynamics. Lease market tensions, he said, reflect supply shortages rather than mispricing.

At press time, gold traded at $4,202.60, up 59.95% YTD, while bitcoin stood at $113,042, up 20.01% YTD, according to MarketWatch.

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