Mark Mobius, the veteran investor, predicts that interest in gold is about to surge over central banks’ promises to cut down rates. This will result in another wave of money printing, he believes.
Bloomberg provides details of the interview in its recent article. Mobius also bashes Bitcoin without realizing that many investors would prefer to buy BTC instead of traditional gold.
Money supply will be growing, Mobius says
The investor referred to the money supply growing at the moment, which is pushing traders towards going for gold-pegged ETFs (exchange-traded funds). He also believes that the current monetary policy of global central banks is going to increase demand in traditional hard assets, such as gold.
Mobius is generally a gold fan, believing that it is necessary to stock up on gold generally.
I think you have to be buying at any level, frankly.
The US Fed Reserve along with a few other central banks is going to ensure easier monetary policy, thus increasing demand for gold that started growing as the trade war between China and the US began.
However, this war, as many experts believe, was one of the core reasons for the Bitcoin price growth.
With the efforts by the central banks to lower interest rates, they’re going to be printing like crazy,” said Mobius.
Many crypto experts, including Anthony Pompliano from the Morgan Creek Digital, believe that as the prospect of quantitative easing is getting more real, many people would prefer to buy Bitcoin rather than gold.
JP Morgan published a report on Friday claiming the Fed will have to restart quantitative easing (print money) “sooner rather than later” to combat an upcoming illiquidity crisis.— Pomp 🌪 (@APompliano) August 11, 2019
Bitcoin’s success formula:
Step 1: Cut rates
Step 2: Print money
Step 3: Bitcoin halving
Looks like the banks are waking up to Bitcoin.— Pomp 🌪 (@APompliano) August 12, 2019
Both JP Morgan and Goldman Sachs have recently suggested to buy Bitcoin.
Every banker secretly wants to be a Bitcoiner!!
Mobius criticizing ‘psycho currencies’
When touching upon the subject of crypto, Mobius referred to virtual assets as ‘psycho currencies’ since they are, he reckons, backed by nothing but people’s faith in them.
You have all these currencies, new currencies coming into play. I call them ‘psycho currencies,’ because it’s a matter of faith whether you believe in Bitcoin or any of the other cyber-currencies. I think with the rise of that, there’s going to be a demand for real, hard assets, and that includes gold.
However, earlier U.Today reported that Mark Mobius has approved of Bitcoin, saying that this asset will be “alive and well” as time passes.
There's definitely a desire among people around the world to be able to transfer money easily and confidentially. I believe bitcoin and other currencies of that type are going to be alive and well.