“
“When interest rates are zero or close to zero, then gold is an attractive medium because you don’t have to worry about not getting interest on your gold and you see that the price of gold will increase as uncertainty increases in the markets.” .
“
That’s Mark Mobius, a pioneer of investment in emerging markets, who shares his view in an interview on Friday with Bloomberg TV that gold prices, which will mark his longest liquidation record, have more room to run.
“I would buy now and I would keep buying,” Mobius told the business news platform.
If GOLD gold prices,
At the end of Friday’s session above $ 1,891.90 an ounce, it would mark its best result based on records dating back to November 1984 for a more active contract, according to Dow Jones Market Data.
After apathetic trade in recent weeks, gold prices have risen higher, backed by concerns about the economic impact of the COVID-19 pandemic and monetary and fiscal policies that threaten to fuel inflation.
Gold’s steady recovery to all-time record levels also occurred as the DIA Jones Industrial Average DJIA,
the S&P 500 SPX index,
and the Nasdaq Composite Inclined Technology Index,
it has increased since it reached a low level of coronavirus in late March.
The Dow is up 43% from its recent low on March 23, the S&P 500 has risen 44%, while the Nasdaq Composite is up nearly 52%. Because gold tends to fall as stocks, considered risky assets, rise, the fact that bullion has gained substantially during the rebound in stock prices is notable.
In fact, gold prices have risen 20% since the end of March and, more significantly, raw materials have risen 25% so far this year, while the Dow and S&P 500 are posting annual losses. and the Nasdaq has a performance of 16% so far this year. in 2020
Still, the weakness in the US dollar DXY,
which is expected to continue is one of the reasons why Mobius expects higher profits for the yellow metal.
Mobius says investors are in a curious place where buying stocks and gold are seen as ways to preserve capital and prevent erosion of inflation. “We are in a very interesting situation where people are looking at stocks to preserve their capital because the stocks will adjust for inflation and also for gold. Your type of coverage of your bets.
The investor said the low and negative interest rates that have prevailed in parts of the world, including Europe, have reduced the opportunity cost of owning gold, providing more support.
The shortage in physical gold supplies from miners, who are also grappling with the viral outbreak, could also further boost prices for previous metals, Mobius said.
“With this COVID, I suppose mining production should be declining for gold and of course that puts additional upward pressure on the price,” he said.
Mobius founded Mobius Capital Partners in 2018 after a three-decade career at Franklin Templeton Investments as a recognized value manager.
.
