Gold Isn’t Overpriced on Purchasing-Power Test, BlackRock’s Evy Hambro Says

BlackRock’s Evy Hambro reframed the question of whether gold has run too far by focusing on what the metal actually buys rather than where the headline price sits.

In a Bloomberg Television interview on Tuesday, the Global Head of Thematic and Sector Investing said internal comparisons show gold stretches further than before for everyday, low-value goods, but buys less of big-ticket items such as a mainstream U.S. pickup or prime Manhattan property. That split, he argued, undercuts blanket claims that bullion is overpriced; valuation depends on which basket you measure against.

Hambro situated gold’s move within a broader macro adjustment in which investors are reassessing real assets versus paper currency. He said momentum and speculative positioning can magnify short-term volatility — “the trend is your friend” — yet the directional backdrop remains supportive for bullion. If markets continue to reprice fiat money relative to real assets, he said gold “could go a lot higher.”

The purchasing-power lens also helps explain why sentiment can look contradictory: prices near records coexist with investors who still see room to run.

Hambro’s point is that gold has preserved and even improved purchasing power for some everyday items while falling behind on others, meaning any single yardstick can mislead.

That nuance matters for a crypto-savvy audience that often compares gold with bitcoin’s fixed-supply narrative; both are framed by inflation, currency debasement and portfolio hedging, but they travel on different adoption curves and risk profiles.

On producers, Hambro emphasized fundamentals rather than making an explicit call that mining shares will beat the metal.

He said margins at many miners are among the strongest he has seen in his career and that valuation models still assume long-term gold prices well below spot and even the forward curve. If elevated pricing persists while analysts raise those “price decks” more slowly, earnings and free cash flow could continue to surprise, though he cautioned that volatility is part of the journey.

Hambro also drew a line between gold and silver. Silver’s industrial exposure — such as solar demand — introduces different dynamics than gold’s primarily monetary role. Tension in lease markets, he suggested, looks like a scramble for physical supply to meet obligations rather than a definitive signal that prices are misaligned.

At press time, gold was $4,202.60, up 59.95% year to date, while bitcoin was $113,042, up 20.01% year to date, according to MarketWatch.