And while Goldman prefers Ether to Bitcoin (as risk-on devaluation bets), "Gold is a value buy" according to Goldman Sachs' Jeff Currie and his Commodities Research group.
As a result of the recent liquidation of inflation tail risk fears, Goldman argues that gold is now again pricing a Goldilocks scenario of moderate inflation and continued global recovery and is thus trading at a large discount to the current real rate.
They estimate that the current gold price is consistent with a real rate of +10bps, dramatically different from the -87bps that is currently priced by the market.
However, in a scenario where the global economic recovery does not play out as expected or inflation begins to move materially above expectations, Currie sees material upside to gold given its undervaluation and low allocation from the investment community. Specifically, Goldman suggests that gold may be a good strategic purchase here for portfolio managers looking to hedge against tail risks of macro volatility.