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Why investors should have 10% portfolio in gold, according to Mark Mobius


Veteran investor and founder of Mobius Capital Partners, Mark Mobius said that investors should look to have 10% of a portfolio in gold as he expects currencies to be devalued following the unprecedented stimulus rolled out to fight the covid pandemic. 

At this stage, “10% should be put into physical gold,” said Mobius in an interview to Bloomberg adding that currency devaluation globally is going to be quite significant next year given the incredible amount of money supply that has been printed.

“It is going to be very, very good to have physical gold that you can access immediately without the danger of the government confiscating all the gold,” Mobius, a long-time fan of the metal, said in the interaction.

Gold prices have come off recent highs but are still holding close to the $1800/ounce level. Spot bullion, which traded at $1,816.16 an ounce, hit record high above $2,075 about a year ago the coronavirus pandemic spurred a flight to haven assets but it’s pulled back since with the roll-out of vaccines. It has shed more than 4% in 2021 (year-to-date).

Meanwhile, gold and silver prices today edged lower in India amid a stronger rupee though global cues were positive. In global markets, gold rates today rose to almost one-month high after US Federal Reserve Chair Jerome Powell on Friday stopped short of providing any clear guidance on the timeline for paring economic support at the Jackson Hole economic conference.

Markets are waiting to see how Jerome Powell balances elevated inflation and recovery from the pandemic with the risk of delta virus strain that has complicated economic reopening.

(With inputs from Bloomberg)

 

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