Experienced US fund manager Mark Mobius advises strongly in a Bloomberg interview to buy gold. His realization: The gold price must continue to rise, because the money supply is growing more and more.
Still buying at the current gold price?
The gold price has risen sharply this year and many may wonder if they should get started now. You can buy gold as an investment or as insurance. If you are looking for returns, then it is best to buy cheap and sell expensive. If, on the other hand, you have no insurance in the event of damage (financial crisis, system collapse, national bankruptcy, hyperinflation, currency reform), this can be fatal and especially expensive.
Investment veteran Mark Mobius
A mixture of both views can be found in the current assessment of Mark Mobius. The well-known fund manager (born 1936) is the founder of the investment company Mobius Capital Partners LLP. Prior to that, he served as divisional manager at the fund manager Franklin Templeton Investments for 30 years and was responsible for a large number of funds, particularly with an emphasis on emerging markets. In the documentary “Let’s Make Money” from the year 2008 he acts as an insider and talks about the dark side of the investment.
Gold price rises with the money supply
On the subject of gold, he said in a Bloomberg interview: “The long-term prospects of gold are up, up, up and the reason why I say that: the money supply goes up, up and up.” He explains: With their efforts to keep interest rates low, the central banks printed crazy money. And the new digital money, which was created in parallel, was a matter of faith for him. He calls Bitcoin & Co. “Psycho-Currencies”. With the rise of this genre, there will be simultaneous demand for real, hard assets. Gold is not only a stable form of investment, but can also serve as a currency.
Buy gold at every level
And Möbius here finds clear words: “I think you have to buy gold, at every level, really”. He recommends investing about 10 percent of the portfolio in physical gold.