Mark Mobius, the former head of emerging markets at Templeton and founding partner at Mobius Capital Partners, says he believes there are “long-term promising returns” in select metal commodities.
In an interview this week on CNBC, the famed investor advocated for precious metals, insisting they will help deliver stability in a portfolio at a time when stocks continue to be volatile. He said not just gold, but also silver, platinum, and palladium.
“you’ve got to be in these precious metals simply because they represent a form of currency. So, I believe those that are looking at gold and silver would be wise to have those in their portfolio.”
The long-time investor also suggested people aim to hold 10% of their investments in precious metals.
That commitment to precious metals may will help iron the crazy volatility in equities.
Though he is recommending diversity within the group, it’s worth noting that Palladium has been an extraordinary performer in the sector. Indeed, it’s the best performer this year.
This is primarily as a result of supply and demand concerns. The precious metal’s supply is being affected due to shortages at a key Russian miner called Nornickle. Water-log issues at two critical Siberian mines are causing supply to be constricted. As a result, this week, palladium is up more than 13%. This issue will likely continue restricting the palladium supply at a time when the world economy seeks to rebuild after the pandemic and thus commodities, like palladium, will be needed.
Gold is still very much in focus and although gold has been searching for direction in recent days, it’s clear that there will be inflationary pressures on the U.S. economy.
At Trish Intel, we advocate for well-rounded, diversified portfolios and want investors to be prepared for any potential inflation issues. Gold, palladium, silver, and other commodities are diversification tools.