Veteran frontier markets investor Mark Mobius suggested that cryptocurrencies will boost the price of gold.

Canadian finance news outlet BNN Bloomberg interviewed Mark Mobius on Aug. 20. The legendary investor believes cryptocurrencies will help the rise of gold. He explained:

“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.”

“Gold’s prospect long-term is up, up and up”

He also explained that he is deeply convinced that recent changes in monetary policy will assist gold’s rise. Mobius said:

“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. [...] I think you have to be buying at any level, frankly.”

Today, gold is at a six-year high as the likelihood that the Federal Reserve and other central banks will continue easing their monetary policy becomes ever greater. The aim of such maneuvers would be to support growth, which has been impacted by the prolonged trade war between the United States and China.

Furthermore, as the U.S. Treasury market signals that a recession is probably coming, investors are looking at gold as a hedge. Mobius recommended allocating at least 10% of one’s portfolio into bullion. He also expects central banks to continue expanding the money supply and lowering interest rates.

According to dedicated website GoldPrice, gold is currently trading at $1,503 — up about 15.5% since the start of the current year. By comparison, Bitcoin is up over 300% in 2019.

As Cointelegraph reported at the end of July, Morgan Creek Digital Assets co-founder Anthony Pompliano says the European Central Bank’s expected dovish turn will provide “rocket fuel” for Bitcoin.