Why USA is selling Gold, While CHINA and RUSSIA are adding?

20^th August 2019.

Why USA is selling Gold, While CHINA and RUSSIA are adding?

Dear Fellow Travellers,

Greetings from Hitesh! At Destiny Management, it’s a ritual to talk about the next year during the DECEMBER. So, when we were writing about 2019, we gave a BOLD call that we see CRUDE / GOLD and SENSEX making a NEW HIGH between MARCH to SEPTEMBER 2019. Many of our regular readers were puzzled with our calls as, normally, GOLD up move is coincided with the stock market downfall.

But our system has proved us 100% right. Gold has made a high of 39000 per 10 grams in India and in USD terms it has made 1540.

Interesting International Trend: -

Recent trend shows CHINA and Russia is adding Gold as if there is no tomorrow and USA the biggest holder of gold is selling at each high.

Economists say World is fearing RECESSION and due to that CHINA and RUSSIA are adding GOLD. Then how come the most affected country, USA is selling GOLD?

There are various aspects of the same and I will share the same with you.

USA is selling GOLD to maintain DOLLAR SUPREMACY: -

USD is the preferred currency of the world trade and reserve currency. It means countries keep their export surpluses in USD. It the GOLD prices moves up VALUE of USD will come down. If this keeps on happening – slowly and gradually, the whole World will move to GOLD standard instead of USD standard.   

So, it makes SENSE of USA to keep on selling GOLD to keep the prices of GOLD under control.

This argument looks logical and appealing. But it will make sense to see what happened to GOLD prices in 2012.

GOLD prices in 2011: -

Gold prices made a high of USD 1896 in 2011. If you look at the historical data CHINA doubled the GOLD imports from 470 tons to approx. 800 tons in that year. So China was buying in that year and china is continuously adding gold to its reserves.

From that high GOLD, prices came down to USD 1200 in early 2013. Incidentally in 2010 Gold price was USD 1052.

In 2012, also we had given a SELL CALL in GOLD. Only one time in since 2006. From that year onwards, our call is BUY only.

Gold prices in 2019: -

Gold prices were USD 1240 in January and it made a recent high of USD 1540. Close to 24% appreciation so far. Our USA based clients and Indian clients have made good money based on our advice.

Going forward, I see TEJI in GOLD / SILVER and PLATINUM. The only thing is that you must have a view of the LONG TERM and an attitude of INVESTOR and not a trader when you are playing in international commodities.

Looking at the US presidential election in November 2020, I see all markets will be volatile. The winner will be the guy who has the VISION of coming events. Our system has been guiding us without fail and our track record since 2008 is proof of the same. We will guild all our clients time to time-based on our findings. 

What should be your ATTITUDE towards GOLD?

I have always maintained to keep GOLD as a part of the asset class in your overall portfolio. I don’t suggest trading in GOLD or other commodities as a rule. I prefer buying physical gold to ETF given a choice.

What NEXT?

Modi has decided to deal with the ECONOMY now. He has done a couple of meetings and some announcements are also coming in. Modi has a super track record of finishing his work ASAP once he takes up the matter on hand. Look, how he handled the KASHMIR issue.

In my last post – I had said that after 12^th AUGUST, SERENITY will come and some announcements will be made. After 12^th only some movement has started.

If you are really serious for investments – this is the time. We are also passing through the auspicious period of SHRAVAN. Now we will have GANESH days. If you want to uplift your financial and personal life, this is the period. You can contact us for our guidance and do the needful.

Have a SUCCESSFUL investing experience.

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

Live With Passion…Invest With Passion.

Hitesh Parikh.