Mark Mobius: “I love gold”

Mark Mobius, perhaps the best-known emerging markets investor in the world, reckons that gold should form at least 10% of any investor’s portfolio. And now is a good time to buy.

Gold bars

Getty Images/iStockphoto

Mark Mobius, founder, Mobius Capital Partners

Mark Mobius, executive chairman of Templeton Emerging Markets Group, © Justin Chin/Bloomberg via Getty Images

Mark Mobius, executive chairman of Templeton Emerging Markets Group, © Justin Chin/Bloomberg via Getty Images

For one thing, "interest rates are going so low, particularly now in Europe". So, as Mobius says, "what's the sense in holding euro when you get a negative rate? You might as well put it into gold, because gold is a much better currency". Expectations of even looser monetary policy from central banks across the globe, including the Federal Reserve in the US, have seen gold hit a six-year high this year already (in US dollar terms at least), of close to $1,440 an ounce.

Advertisement - Article continues below

Cutting interest rates isn't the only factor central banks, particularly in Russia and China, have also been ramping up their own purchases of gold to add to their reserves. And while Mobius is not a buyer of cryptocurrencies at the moment ("I don't know what the real value is"), a resurgence of interest in the likes of bitcoin has also drawn attention back to alternatives to fiat currencies such as gold. In all, Mobius reckons the price could go further from here, to top $1,500 by the end of the year.

In terms of wider markets, Mobius favours stocks over bonds, and he is also still a big believer in emerging markets, which are set to benefit from ongoing, business-friendly reforms.




Don’t panic about Iran – but don’t sell your gold either

Markets have reacted calmly to the tension between the US and Iran. But don’t get too complacent. It’s still a good idea to hold on to some gold as in…
9 Jan 2020

Here’s how gold could rise above $7,000 an ounce

That the gold price could hit $7,000 an ounce is a logical and plausible possibility, says Charlie Morris. Here, he explains how it could get there.
30 Dec 2019

Gold is in a bull market – and it could have much further to go

Many investors forget that gold is still the best-performing asset of this century, says Charlie Morris. It could also have much further to go.
27 Dec 2019

All the gold in China: money and power goes east

China has far more gold than official figures suggest – as much as America, in fact. He who owns the gold makes the rules, says Dominic Frisby.
15 Nov 2019

Most Popular

Global Economy

The MoneyWeek Podcast: James Ferguson on the virus, the lockdown, and what comes next

Merryn talks to MoneyWeek regular James Ferguson of Macrostrategy Partnership about what's happened so far with the virus; whether the lockdown was th…
28 May 2020

As full lockdown ends, what are the risks for investors?

In the UK and elsewhere, people are gradually being let off the leash as the lockdown begins to end. John Stepek looks at what risks remain for invest…
29 May 2020

Can the UK housing market escape a slump?

The Bank of England is predicting a 16% slump in house prices.
29 May 2020