Posted November 17, 2018 06:31:17 Blackstone has been the subject of some controversy after it announced its plans to buy up to $3.5 billion worth of UK gold.

What do you make of the news?

A lot of investors are buying into the company, but a lot of people are concerned that the company may be over-valuing its gold holdings. 

What is blackstone?

Blackstone is a global investment banking firm, which operates in the investment banking, insurance, retailing, and real estate industries. 

Why is it buying up gold?

The company said it would be buying up the bulk of its UK gold holdings to help diversify its portfolios. 

Is it a new company?

No.

Blackstone already has a portfolio of about $6 billion, and its chairman, Jeff Immelt, has said that he expects the firm to double its gold portfolio over the next five years.

What is the company’s gold portfolio?

The firm has an investment portfolio of gold, silver, copper, and precious metals.

It holds a large amount of gold held in various institutions including its own private wealth fund, its European Private Wealth Fund (EPWF), its Australian Private Wealth Funds (APWF), and its International Private Wealth ETF (IPWF).

What are the risks?

While blackstone has not revealed the size of the purchases, some investors have expressed concerns that the buy-up may actually lead to a higher price of gold. 

Will the price of bitcoin go up? 

The bitcoin price has been steadily climbing for the past few weeks.

It is currently at around $1,400 an ounce, but is up about 30 per cent in the past month, to $1.25, according to CoinDesk.

The cryptocurrency has been on a bull run in recent months, rising from around $2,600 a coin to more than $5,000 per coin by the end of March.

However, as the price rises, bitcoin is losing value as a store of value and it will likely be on a gradual decline, as many investors are increasingly worried about the price and volatility of bitcoin. 

Do you have an opinion on blackstone’s decision?

Share your thoughts in the comments below.