Veteran investor Mark Mobius gave a blanket endorsement to buying gold, saying accumulating bullion will reap long-term rewards as leading central banks loosen monetary policy and the rise of cryptocurrencies serves only to reinforce demand for genuinely hard assets. Prices climbed.
“Gold’s long-term prospect is up, up and up, and the reason why I say that is money supply is up, up and up,” Mobius, who set up Mobius Capital Partners LLP last year after three decades at Franklin Templeton Investments, told Bloomberg TV. He added: “I think you have to be buying at any level, frankly.”
Gold is monetary metal and is therefore valued both as a currency and a commodity. In both markets the outlook for interest rates and supply are important considerations. Interests rates are on a downward trajectory everywhere. Just by having a zero pay-out, gold is looking more attractive. In an environment where competitive currency devaluation is a growing trend gold is a standout for holding its relative value.Click HERE to subscribe to Fuller Treacy Money Back to top