Mark Mobius: Keep 10 Percent Physical Gold in Your Portfolio

Currency devaluation is inevitable, according to investment guru Mark Mobius, who recommends that investors hold at least 10 percent of their portfolio in easily accessible physical gold.

In an article published on Portfolio.hu, the founder of Mobius Capital Partners explains that currency devaluation globally will be quite significant next year, given the extraordinary volume of money printed by central banks around the world.

The yellow precious metal reached a record price of USD 2,075 per troy ounce last August, against which the current range of USD 1,800 to 1,820 represents a particularly attractive entry point.

In parallel with gold's decline, major equity indices reached record highs as optimism returned to the markets.

_The S&P 500's overvaluation relative to gold stands at a five-year high._

In this environment, buying gold makes good sense, because when panic erupts, not only the price but also trading costs can rise sharply — particularly for physical investment gold bars and coins.

Alongside gold, silver and platinum are also trading at attractive entry levels, making it worth allocating as much as 15 to 20 percent of investable assets to precious metals — complementing the safe-haven attributes of gold with exposure to the grey metals as well.