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Mark Mobius suggests holding 10% in physical gold, says currencies globally to be devalued

Mobius, who has over 30 years of experience at Franklin Templeton Investments, has cited the increased government expenditure in form of pandemic stimulus as the reason behind a likely devaluation of currencies.

August 30, 2021 / 02:58 PM IST
File image of Mark Mobius (Source: CNBC)

File image of Mark Mobius (Source: CNBC)

Investors should keep 10 percent of their portfolio in physical gold as currencies across the globe are set for a major devaluation, veteran investor Mark Mobius was reported as saying on August 30.

Mobius, who has over 30 years of experience at Franklin Templeton Investments, has cited the increased government expenditure in form of pandemic stimulus as the reason behind a likely devaluation of currencies.

An "incredible amount" of money would be printed due to the stimulus, due to which the currency devaluation globally will be quite significant next year, Mobius told Bloomberg.

Also Read | US Fed chair Jerome Powell hints at tapering of easy money policy by year-end

Considering the above scenario, "10 percent of investments should be put into physical gold" at this stage, he said.

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“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 was quoted as saying.

Mobius' remarks come in the backdrop of bullion rates decelerating following the global rollout of vaccines. The rates had soared to record-high levels last year when lockdowns were imposed to combat the health crisis.

Spot bullion head reached $2,075 about a year ago, and has since, lost four percent of its value. In India, gold prices had breached Rs 56,000 in August last year, and are currently hovering around the Rs 50,000-mark.

Most economies across the world have increased their expenditure in order to stimulate the economy jolted by COVID-19. The fiscal stimulus has boosted balance sheets maintained by central banks globally, leading to inflation and a higher fiscal deficit.
Moneycontrol News
first published: Aug 30, 2021 02:58 pm
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