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BP.TV previously reported on the real reason so many pencil-tower high-rise apartment buildings are being constructed. In the free-money era set by the central banks around the world, there are few places to convert cash into a growing investment. Expensive art, expensive wristwatches, and big city apartments are the “alternative investments” that are protected from inflation.
That is why the ultra-expensive apartments are in more demand than run-of-the-mill apartments. That is why people even wear big gaudy watches in the age of smartphones. That is why hedge fund moguls pretend to be lovers of fine art.
Bloomberg reports, “Gold’s traditional role as a store of wealth has been usurped by contemporary art and apartments in cities such as New York and London, according to Laurence D. Fink, head of the world’s biggest asset manager. “Historically gold was a great instrument for storing of wealth,” the chairman of BlackRock Inc. said at a conference in Singapore on Tuesday. “Gold has lost its luster and there’s other mechanisms in which you can store wealth that are inflation-adjusted.””