- Investors should buy gold as economic stimulus measures devalue currencies, according to Mark Mobius.
- The veteran investor said its better for investors to own physical gold than an ETF.
- “Currency devaluation globally is going to be quite significant next year given the incredible amount of money supply that has been printed,” Mobius said.
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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%.