Mark Mobius Says Portfolios Should Hold 10% In Gold

EDITOR NOTE: Millionaire hedge fund manager Mark Mobius has a simple piece of advice for investors in these turbulent times: Buy gold. "Currency devaluation globally is going to be quite significant next year given the incredible amount of money supply that has been printed," the Mobius Capital Partners LLP founder recently told Bloomberg. “10% [of investor portfolios] should be put into physical gold." Mobius also gave a major endorsement to non-CUSIP gold that the government can’t confiscate. He explained, “It is going to be very, very good to have physical gold that you can access immediately without the danger of the government confiscating all the gold."

Legendary investor Mark Mobius believes investors should buy gold in preparation for a massive devaluation in global currencies next year, according to a Bloomberg report.

Mobius believes the unprecedented economic stimulus that has been unleashed since the onset of the COVID-19 pandemic will lead to a number of currencies being devalued going forward. The US alone has spent trillions on stimulus programs to help accelerate economic growth in the wake of the pandemic, including multiple direct stimulus checks.

"Currency devaluation globally is going to be quite significant next year given the incredible amount of money supply that has been printed," Mobius said.

To counter the currency devaluation, investors should buy physical gold rather than the more popular route among investors of buying a gold ETF, according to Mobius. "10% [of investor portfolios] should be put into physical gold," Mobius said, according to Bloomberg.

"It is going to be very, very good to have physical gold that you can access immediately without the danger of the government confiscating all the gold," Mobius added.

Despite the unprecedented expansion in money supply, it has still paid to own stocks rather than gold. Year-to-date, gold is down 4% while the S&P 500 is up about 20%.

Originally posted on Markets Business Insider