Buy Gold ‘At Any Level,’ Mobius Says as Central Bankers Ease
It is already well known that gold is a soft yellow precious metal. It is one of the most used metals in jewelry stores because of its elementary composition and its rarity and because it is a difficult metal to find in nature and on earth, it is more abundant in the interior of the mountains.
Now, Joseph Bernhard Mark Mobius who is an administrator of emerging market funds and founder of Mobius Capital Partners LLP says, “Buy gold ‘at any level’”. Likewise, the investor has indicated that the increase in ‘psycho’ digital currencies helps demand. In addition, the bullion has recovered to the maximum since ’13 when the Fed cuts rates.
Veteran investor Mark Mobius gave general support for the purchase of gold, saying that bullion accumulation will reap long-term rewards as major central banks loose monetary policy and the increase in cryptocurrencies only serves to reinforce the demand for really hard assets. The prices went up.
A maximum level
It is necessary to indicate that gold has reached a maximum of six years this month in the prospects of an easier monetary policy of the Federal Reserve and other central banks to support the growth that has been affected by the prolonged trade war between the United States and China. Likewise, with the US Treasury market. Noting that there may be a recession on the horizon, investors have crowded into publicly-traded funds backed by bullion.
There is no doubt that the growing role of digital currencies such as Bitcoin has sparked a debate in the precious metals market both about its intrinsic value and whether its growing popularity will detract from traditional refuge gold. In this way, one could say that for Mobius, his advent will actually increase bullion consumption.
For his part, Mobius has indicated, “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” also he added, “I think you have to be buying at any level, frankly”.
Mobius added, “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”.
It is necessary to emphasize that spot gold, which reached $ 1,535.11 an ounce on August 13, the highest since 2013, rose to 0.5% to $ 1,503.46 on Tuesday, and rose 17% this year. In addition, it is understood that as signs of a global slowdown emerge, central banks have boosted housing. The Fed cut interest rates last month for the first time in more than a decade, while authorities in China have provided specific support.
Source: Ranjeetha Pakiam and Haslinda Amin | Bloomberg