GO
Loading...

Gold Could Hit $2000 Amid Inflation: BlackRock Exec

Wednesday, 29 Sep 2010 | 4:43 PM ET

Investors will continue to see strong demand for gold and exchange-traded funds (ETFs) are the best way for regular investors to benefit from the commodity's rise, said Robert Kapito, president of BlackRock.

“Since 2001, gold has returned about 17 percent a year, so it’s a very good long-term investment,” Kapito said in an interview on CNBC. “Clients are looking to get exposure into something that they feel comfortable with, and gold is proven to be a good investment.”

Gold settled above $1,310 an ounceafter hitting its 10th record high in 12 trading days as investors worried that aggressive measures by the Federal Reserve to prop up the economycould undermine the dollarand spark inflation.

“If you adjust for inflation, gold can go up to the $2,000-area,” said Kapito.

In addition to gold, Kapito advised investors to look into dividend-paying stocks.

Featured

Contact Economy

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More