'You've got to be in these precious metals': Mark Mobius names his top commodity investments

Published Wed, Mar 17 202110:12 AM EDTUpdated Wed, Mar 17 202110:23 AM EDT

Emerging markets guru Mark Mobius sees promising long-term returns in select metal commodities, at a time when stocks are becoming increasingly volatile. Mobius, the longtime executive chairman of Templeton Emerging Markets Group and founder of Mobius Capital Partners, says he views these particular metals as a form of "currency," and outlined just how much of your portfolio should be allocated to them in an exclusive interview with CNBC Pro Talks on Wednesday. One S & P index that measures the performance of commodities, including the ones on Mobius's list, is already up nearly 20% this year. As fears over inflation grow, some of the investor's metal picks are being bought up as hedges or safe-haven assets during a time of increased uncertainty. Here are Mark Mobius' favorite metals to invest in: "As regards to gold and silver, as you know I'm a big fan of these precious metals," he told CNBC's Martin Soong . "Not only gold, silver, but also palladium and platinum. I believe as a long, long term investment that's the best way to be. You've got to be in these precious metals, simply because they represent a form of currency," he added. "So I believe that those who are looking at gold and silver would be wise to have some of that in their portfolio." Palladium 's price is roughly flat year-to-date at $2,487 per ounce, one that Mobius sees as a promising investment likely because demand for it consistently outstrips its supply. The precious commodity is increasingly being used in fuel cells that power cars and buses, and is used in laptops, cell phones, dental fillings and jewelry, among other things. Platinum , similar in appearance to palladium, is a white metal also used in the auto industry. It was trading at $1,217 per ounce on Wednesday morning, down from a more than six-year high it hit in mid-February at $1,304. But some investors see the metal pushing higher through 2021 due to a comeback in industrial demand. The auto industry accounts for nearly half of all demand for platinum, and that demand is set to grow as emissions standards for cars tighten, since platinum — like palladium — is used in catalytic converters, a part of vehicles' exhaust systems that help cut toxic gas emissions. So how much of your portfolio should be dedicated to these four metals? "I would say about 10% of the average portfolio to be in these precious metals," Mobius said, "particularly gold." The S & P GSCI index , which measures the performance of a range of commodities including precious metals, industrial metals, energy, agriculture, and livestock, is up 19% year-to-date.

Mark Mobius, founding partner of Mobius Capital Partners, speaks at the 10th edition of the Bosphorus Summit in Istanbul, Turkey.

Serhat Cagdas | Anadolu Agency | Getty Images

Emerging markets guru Mark Mobius sees promising long-term returns in select metal commodities, at a time when stocks are becoming increasingly volatile.

Mobius, the longtime executive chairman of Templeton Emerging Markets Group and founder of Mobius Capital Partners, says he views these particular metals as a form of "currency," and outlined just how much of your portfolio should be allocated to them in an exclusive interview with CNBC Pro Talks on Wednesday.

One S&P index that measures the performance of commodities, including the ones on Mobius's list, is already up nearly 20% this year. As fears over inflation grow, some of the investor's metal picks are being bought up as hedges or safe-haven assets during a time of increased uncertainty.

Here are Mark Mobius' favorite metals to invest in: