Praise Lord - We are Proved 100% Correct in Gold AGAIN, Should You Buy Now?

15 March 2015

Praise Lord - We are Proved 100% Correct in Gold AGAIN, Should You Buy Now?

Greetings from Hitesh! Hope you are having a great Sunday with your family. I wish you a happy time. Get recharged for the next week. Today I am going to talk about the GOLD. I know most of you love it like anything. I have a successful track record of prediction GOLD prices since 2006!!

My last post on Gold was on 25^th July 2014, when the gold price had made a high of USD 1350 per ounce. In that we had  categorically said not to buy GOLD. Most experts were of the view that GOLD prices will go up due to WAR like situations and money printing (QEs) prevailing at that time. 

They all proved 100% wrong. GOLD made USD 1152 per ounce yesterday!! In fact GOLD never crossed USD 1350 after their call!! Still you follow them!! Because your time of making money has not come yet!! Our call of not touching GOLD has come 100% Correct!!

Who is behind Hitesh Parikh?

I remember the famous Shayari of Iqbal –

“Fanoos banke jiski hifazat hawa kare,

woh shama kya bujhe, jise raoshan khuda kare”

When I look at the market in larger perspective I am not even a SHAMA. But thanks to GOD, I am able to give correct prediction on market and GOLD time and again. I am grateful to GOD for giving me the intelligence and wisdom to understand the market trend and guide you ahead of the experts and market. I really feel blessed when I look at my own track record of predicting market and stocks. Honestly, GOD is behind me. It is HE, who is giving me the guidance and I am just a MEDIUM to communicate to you. If you wish, just take advantage of the same.

What is an Expert’s View on GOLD Now?

US FED is meeting to decide about the increase in rate of interest early next week. USD is stronger against all commodities and currencies due to that. In fact, FED is considering a raise in interest rate – is sufficient reason for keeping USD strong.

If USD is strong – all commodities – including GOLD will come down – that’s the consensus call of market experts. Now they are not talking about WAR – while The ECONOMIST is talking about WAR in last issue!! Hitesh Parikh has already predicted WW3.

Our Track Record in Gold:-

1.      We had asked to buy GOLD and Silver in Navratri of 2006. At that time the price of 100gms of GOLD was at 86000/- and Price of 1kg of Silver was at Rs.17500. Our target in Gold was Rs.300000/- and Silver Rs.50000/-. Since then Gold has touched our target and Silver has made a high of Rs.73000 per kg.

2.      On 28^th June 2012, we had categorically said that Gold prices are going to go down and it went down by 28% in 2013 (USD Term). Not a single expert was talking about Gold prices going down at that time.

3.  On 8^th January 2014, we wrote “Why Low Gold Imports Can Keep Rupee Under Pressure?”. In the same we had categorically said that we do not agree with the Govt target of Low Gold Import and latest figures prove our call. According to latest figures, 14.33 metric tonnes (MT) of goldwere imported in June 2014 compared to 3.74 MT in the same period in 2013, recording growth of 74%.

4.  On 25^th July 2014 also we asked not to buy GOLD. It came down from USD 1350 to USD 1152 yesterday! What else you want from me!!

(As always, when we had asked….no expert’s were talking about Gold and Silver….so, very few believed in our call….but those who believed in our call….are blessing us now.)

What is our call NOW?

Gold prices have come down from around USD1900 in 2013 to USD 1150 per ounce now, fall of around USD 750 in last 2 years. GOLD price of USD 1150 per ounce is near to the manufacturing cost of the mines world over. In fact, one leading mine has already decided to stop the production of GOLD.

We feel down side from here is not more that 10% to 15% in the worst case scenario and upside from here is more than 50% to 100% in the long term. We have already asked our clients to accumulate gold in small lots at regular interval.

What is the Indian Scenario?

In India, Govt decide the gold prices on which the duty will be levied. Looking at the world market – Govt reduced the TARIFF value of gold from USD 393 to USD 375 per 10 grms (TARIFF value is the price which will be considered to charge import duty, irrespective of your actual buy price)

If you multiply USD 375 into Rs.63, you have a gold price in India at Rs.23625. Add 10% duty and you have official price of Rs.26000. Add Rs.500 to Rs.1000 – retailer’s margin plus vat and you are getting GOLD at Rs.26500 to Rs.27000 per 10 grams of  Gold(.999 purity).

Effectively there is a gap of Rs.3300 for retail investors (Rs.27000 -Rs. 23625) when they buy GOLD from India. If duty is reduced – gold prices can go down further in India, irrespective of World prices. This is the risk you will have to take – if you want to BUY Gold in India. For my NRI readers – they will save Rs.3300 when they buy in USA or any other countries.

What has happened with HNIs in recent Past?

HNIs (high net worth Individuals) have made tons of money in Stock market from May 2014 to till now. They are stuck in real estate investments. Businesses across all industries in India are facing liquidity crunch. Under this scenario – to lend money in CASH is a risky for HNIs. They will prefer to keep their CASH in GOLD rather than in any assets. As such there is increase unauthorised GOLD imports in last year as per various media reports. Every day the news are coming that GOLD is confiscated at so and so airport. Who is buying this GOLD in INDIA? We do not know, but somebody must be buying!!

What is my final call?

From every Rs.100, I will invest Rs.90 in Equities and Rs.10 in Gold going forward. If you wish to take advantage of our stock picking skills - I suggest you join us.

Have a Great Sunday.

Follow me on Twitter @hiteshmparikh Or on Whatsapp - +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh.