One of the most famous and at the same time mysterious investors, Mark Mobius, said in an interview with Canadian news resource BNN Bloomberg that a successfully developing cryptocurrency market could positively affect the price of gold.
“New currencies are coming into play. I call them “psychological currencies” because it is a matter of faith – do you believe in bitcoin or any other cryptocurrency. I think that with the growth of this demand, the demand for real assets, for example gold, will increase, ”the expert notes.
He also said that he was deeply convinced that recent changes in monetary policy would increase the price of gold.
“The long-term prospect of gold is growth, growth and once again growth. The reason for this is the constant growth in the money supply. I think we need to buy gold at any level, ”Mobius said.
Today, the price of gold has reached a six-year high, as the likelihood that the Federal Reserve and other central banks will continue to soften their monetary policy is increasing. The purpose of such maneuvers will be to support growth, which was influenced by the protracted trade war between the US and China.
In addition, as the US Treasury bond market signals the likelihood of a recession, investors see gold as a hedge. Mobius recommends allocating at least 10% of his portfolio to buy gold. He also expects central banks to continue to saturate the market with money and lower interest rates.
According to the specialized site GoldPrice, gold is currently trading at $ 1,503, an increase of 15.5% since the beginning of this year. For comparison, in 2019, the price of bitcoin increased by more than 300%.
Joseph Bernhard, Mark Mobius, the founder founder of Mobius Capital Partners LLP, started investing in more than 40 years, but this did not prevent him from becoming a condemned expert. Mobius became known in Russia in the mid-nineties, when he opened a branch of the John Templeton Foundation in Moscow. For twenty years, the fund, led by Mobius, has invested in shares of Sberbank, Norilsk Nickel, Aeroflot, M. Video and other large companies. In addition, Mobius has long been an independent director of PJSC Lukoil. Even after the Templeton Fund left the country, the investor continued to earn money on the Russian market for several years and made positive predictions about its prospects. Over the years of work with Templeton, Mobius increased the size of managed assets from $ 100 million to $ 30 billion.