Buy gold ‘at any level,’ as central bankers ease - Mark Mobius

Veteran investor Mark Mobius gave a blanket endorsement to buying gold, saying that accumulating bullion will reap rewards over the long term as leading central banks loosen monetary policy and the rise of cryptocurrencies serves only to reinforce demand for genuinely hard assets.

“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 told Bloomberg TV. He added: “I think you have to be buying at any level, frankly.”

“With the efforts by the central banks to lower interest rates, they’re going to be printing like crazy,” said Mobius, who recommends allocating about 10% of a portfolio to physical bullion. In the interview he didn’t spell out a price target for gold in his on-air remarks.

The increasing role of digital currencies such as Bitcoin has spurred a debate in the precious metals market both about their intrinsic worth, and whether their rising popularity will detract from traditional haven gold. For Mobius, their advent will actually boost bullion consumption.

“You have all these currencies, new currencies coming into play,” he said. “I call them ‘psycho currencies,’ because it’s a matter of faith whether you believe in Bitcoin or any of the other cyber-currencies. I think with the rise of that, there’s going to be a demand for real, hard assets, and that includes gold.”