While stock market volatility has dropped to a seven-year low as major indexes continuously rise to record highs, that blissful investing state can't last forever, says Goldman Sachs CEO Lloyd Blankfein.

The Chicago Board Options Exchange Volatility Index (VIX), which measures the expected volatility of the S&P 500 index, fell to 10.73 last week, its lowest level since February 2007.

Meanwhile, the S&P 500 and Dow Jones Industrial Average have hit all-time highs this week.

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"The luxury of a steady, calm, quiet market" might continue for a period, but will ultimately halt, Blankfein told CNBC.

"At the end of the day, it's not a normal condition to have interest rates at zero," he said. "Eventually people will acknowledge higher [economic] growth. Money as a commodity will start to cost something again. . . . That in itself will produce a shock to the market."

The danger constantly lurks of "some exogenous event . . . that's going to cause people to have to reset their portfolios," Blankfein noted.

"There is always something coming that we don't know about because nobody know what is the future is," he added.

"What's been the backbone of the financial markets is the concept that central banks are accommodating to the fullest extent possible," Jim Welsh, a portfolio manager at Forward Management, told Bloomberg.

"The belief that has evolved from that is that the market is almost invulnerable as long as the banks are doing that."

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