You have to be in gold, silver, platinum and palla...

(Kitco News) - Even if bond yields have room to move to 2%, investors should continue to hold precious metals as a long-term investment, according to one billionaire investor.

In an interview with CNBC, Mark Mobius, executive chairman of Templeton Emerging Markets Group and founder of Mobius Capital Partners, noted his long-term affection for precious metals. And not just gold, but silver, platinum, and palladium.

'You've got to be in these precious metals, simply because they represent a form of currency,' he said in the interview. 'So I believe that those who are looking at gold and silver would be wise to have some of that in their portfolio.'

Mobius added that investors should hold about 10% of their portfolio in precious metals, particularly gold.

The gold market received a small boost Wednesday after the Federal Reserve signaled that it would be in no hurry to raise interest rates anytime soon, even as they raised their growth and inflation forecasts for 2021.

Although the yellow metal has given up some of its gains, prices are still holding well above critical support, around $1,700 an ounce. April gold futures last traded at $1,723.70 an ounce, down 0.23% on the day.

As for other precious metals, palladium has been the best performer in the sector. It continues to benefit from a significant supply/demand imbalance. So far this week, the precious metal is up 13%. The rally started after Russian mining giant and the world's largest palladium producer Nornickel said it expects platinum group metal production to fall by 710,000 ounces.

June palladium last traded at $2,672 an ounce, up more than 5% on the day.

Mobius' bullish outlook for precious metals comes as gold, in general, struggles to attract new bullish momentum as nominal bond yields continue to rise. The yield on 10-year notes is currently trading at a 13-month high above 1.7%.

Although bond yields have room to move higher, Mobius said investors need to look at the bigger picture.

'A 2% rate for the 10-year is not high and I don't think that will attract many people,' he said. 'It's not very significant.'