MARK Mobius, co-founder and partner at Mobius Capital Partners, has recommended continued buying of gold as trade tensions between the US and China show no sign of abating whilst the economic fallout from Covid-19 is may worsen.
He told Bloomberg TV: “When interest rates are zero or near zero, then gold is an attractive medium to have because you don’t have to worry about not getting interest on your gold and you see the gold price will rise as uncertainty in the markets are rising. I would be buying now and continue to buy, because gold is really on a run, it’s doing well”.
Bullion is heading for a seventh weekly gain, the longest stretch since 2011, while silver is poised for its biggest weekly advance in about four decades, said Bloomberg News.
While there’s more need than ever to keep governments spending, the extra money being printed will likely prompt investors to increase their gold exposure, Jake Klein, executive chairman at Evolution Mining, said in a Bloomberg TV interview.
“There is good reason to believe that we will go past that record,” Klein said, referring to prices. “Gold has a long way to go and prices will be strong.”
Joni Teves, a precious metals strategist for UBS Investment Bank, told Bloomberg News on Monday that consolidation of positions would be on investors’ minds in the coming weeks. She didn’t think the gold price had much upward umpf in its locker. That raises the question as to whether the market has already seen the best the gold price can offer.