Even as we continue to see gold prices rallying in the year so far, emerging markets veteran Mark Mobius says that he is bullish on the yellow metal. “I’m bullish on gold, as you can imagine. I’m not saying that it will not go down, of course it’s going to fluctuate,” Mark Mobius said in an interview to CNBC TV18. Advising investors with regards to the asset allocation, Mark Mobius said that people must invest at least 10% in physical gold. Mark Mobius explained that with the rise in cryptocurrencies, the money supply is increasing. “No one really knows what the money supply is. You add to the fact that Americans, Europeans and other countries have been printing like crazy, means that money supply has gone through the roof. So, the value of gold should increase, as it is a commodity with limited supply,” he said.
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Sharing his take on how India should tackle the ongoing economic slowdown, Mark Mobius said that the country should look to boost infrastructure spending. “India should look to issue bonds internationally. This will help the country to grow, and boost exports,” he told the channel. Mobius pointed out that a lot of high risk countries are issuing bonds at very low interest rates. “The euro is now undergoing negative rates. You have to pay the bank to keep your money. So this is a very strange and opportune moment for India,” he said.
Earlier in August, Mobius pointed out that both internal and external factors are contributing to the economic slowdown. “50% of India’s problems are because of indigenous problems. We will look for lower taxes in India and bringing in foreign investors in infrastructure will be key,” the expert had said.