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.

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.

Recommended

James Anderson: innovation is still the key to returns
Investment strategy

James Anderson: innovation is still the key to returns

James Anderson, the man behind the Scottish Mortgage investment trust, tells Merryn Somerset Webb what he’d buy now
13 May 2022
A simple investment lesson from Warren Buffett that even children can learn
Investment strategy

A simple investment lesson from Warren Buffett that even children can learn

Warren Buffett has an incredible investment record. And at the core of his strategy there is one very simple principle. Rupert Hargreaves explains wha…
6 May 2022
Seven of the best gold and gold mining funds
Gold

Seven of the best gold and gold mining funds

Everyone should have some gold in their portfolio, and one of the best ways of doing that is by investing in funds. Rupert Hargreaves picks seven of t…
29 Apr 2022
Gold shows its mettle as a safe haven at last
Gold

Gold shows its mettle as a safe haven at last

Gold has proved its worth as a safe haven, gaining 9% since the start of the year and recently finishing its best quarter in nearly two years.
28 Apr 2022

Most Popular

Get set for another debt binge as real interest rates fall
UK Economy

Get set for another debt binge as real interest rates fall

Despite the fuss about rising interest rates, they’re falling in real terms. That will blow up a wild bubble, says Matthew Lynn.
15 May 2022
Is the oil market heading for a supply glut?
Oil

Is the oil market heading for a supply glut?

Many people assume that the high oil price is here to stay – and could well go higher. But we’ve been here before, says Max King. History suggests tha…
16 May 2022
Value is starting to emerge in the markets
Investment strategy

Value is starting to emerge in the markets

If you are looking for long-term value in the markets, some is beginning to emerge, says Merryn Somerset Webb. Indeed, you may soon be able to buy tra…
16 May 2022