“I love gold,” said Mobius, who set up Mobius Capital Partners last year after three decades at Franklin Templeton Investments, while in Singapore, adding that bullion should always form part of a portfolio, with a holding of at least 10percent. “As these interest rates come down, where do you go?”
Gold has rallied in 2019, rising to the highest level in six years, as investors contemplate slowing economic growth, prospects for easier monetary policy in the US and Europe and festering trade frictions. The upswing has been given added momentum as central banks, including authorities in Russia and China, step up purchases.
A revival in cryptocurrencies may lead to spillover demand from investors for the older haven, according to Mobius.
“Interest rates are going so low, particularly now in Europe,” he said.