Gold's long-term move is 'up, up and up'
Veteran fund manager, Mark Mobius, sees a case for gold outperforming in the long-term amid global central banks easing monetary policy
In an interview with Bloomberg, he notes that:
"I think you have to be buying at any level, frankly. Gold's long-term prospect is up, up and up, and the reason why I say that is money supply is up, up and up. With the efforts by central banks to lower interest rates, they're going to be printing like crazy."
Mobius also says that investors should hold about 10% of physical gold in their portfolios.
Essentially, this argument makes sense and is part of the reason why gold has risen from the mid-$1,200s to current levels since June.
But with expectations so aggressively priced in at the moment - Fed funds futures see 100 bps worth of cuts by end-2020 - I reckon there's room for markets to take a breather and readjust before the climb higher in gold continues.