Mark Mobius says “Buy GOLD at any levels”. What is our view?

21^st August 2019

Mark Mobius says “Buy GOLD at any levels”. What is our view?

Dear Fellow Travellers,

Greetings from Hitesh! Yesterday, we wrote – Why the USA is selling Gold – and after our post came the interview of MARK MOBIUS and he gave this BLANKET ADVICE to buy Gold at any rate for the long term. He advised keeping 10% gold in the portfolio without giving any target for the long term.

He said – “Gold long term prospect is UP, UP and UP, and the reason why I say that is money supply is UP, UP and UP.”

The Bloomberg Interview talks about his calls in EARLY JULY 2019 – he gave the GOLD price target at USD 1500 when the gold price was 1413!! Does this need ROCKET science?

Looking at his experience and data availability, I would be happy if he would have given calls at USD 1240 for USD 1500? We gave the target of 1570 to all our clients before it crossed USD 1300.

Mark Mobius in August 2019 resembles Rakesh Jhunjhunwala in December 2017: -

In December 2017, Rakesh gave a BOLD call for SENSEX touching 125000 levels in the long term and he talked all good about market and economies. We know - what happened to the market in 2018 and 2019.

I had categorically said in OCTOBER that market will be down for two years as SATURN is in DHANU RASHI till JANUARY 2020.

So, when now MOBIUS talks about GOLD buying, I take this with a pinch of salt.

Does this MEAN that ALL BIG GUYS MISGUIDE with their interviews?

I don’t think so. They are right in the context in which they say. The problem comes with the interpretation by NORMAL guys. Normal guys don’t want to invest time and money in developing investment skill sets and they want FREE advice. Something for nothing. So, they follow all the MEDIA guys and try their luck. More the successful investor – more attention will be given to what he says.

If they listen to these guys in TOTALITY then it is 100% okay. But - they only listen to what they want to listen and then they blame these guys and market.

What MOBIUS said about GOLD is a TRUTH and he will go 100% right in that in the long term. But do you know what is his definition of LONG TERM?

So, does it mean that GOLD will move up further from here?

In India Gold has moved up from Rs.31500 for 10 grams to Rs.39000 for 10 grams in 2019. In Dollar terms USD 1240 to USD 1540. Approx. 24% return in both the currencies.

I have already asked my clients to book a 25% profit and I will be booking profits as the gold moves up in the short term.

My 25 years of experience with SMALL INVESTORS tells me that they are not programmed to stay on the CREASE for the LONG TERM, though they talk and appear to be serious about long term investments. All they want is a FAST MONEY in the shortest possible time. If the prices move down by a few rupees from their purchase price – they start panicking.

I think, small investors need to be more SELF AWARE of their MIND GAME and deal with the same.

What should be your strategy in GOLD?

It depends on your GOALS, RISK APPETITE, and SKILL SETS. If you want proper and timely advice for STOCKS / GOLD or any other asset classes under the sun, you can approach us. If you also want to know what your LUCK favors, you can approach us. 

Have a GREAT INVESTING.

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

Live With Passion…Invest With Passion.

Hitesh Parikh.