Should you invest in Bitcoin / Gold – Part 2.

 

23^rd October 2020

Should you invest in Bitcoin / Gold – Part 2.

Dear Fellow Travelers,

Namaste! I like the responses to my last post on the above subject. Many people failed to see the larger picture. They were interested in knowing only one thing – buy or sell. I can’t help them as they are focusing on something without taking the pain to understand the underlying situations.

Why they are recommending Bitcoin and Gold?

Robert and team are hell-bent on making you buy Bitcoin and Gold. Their reasons are cheating of Central bankers / coming uncertainty/war-like situations / Covid-19 Scam and things like that.

Gold is a good hedge against all the above situations. I have no doubt about it. Most GOLD ETF managers are also giving such logic to take out money for their funds from innocent investors. I have no problem with them also.

My questions are –

1.  Those who are creating these situations in the first place – are so fool that they are not aware that you are converting your cash into Bitcoin and Gold?

2.  If they are aware – why they are allowing you to buy?

3.  Why there are BIG BANKS who are selling their gold and you are happily, buying them?

4.  Why Miners are mining Crypto Coins and selling you?

Unless you are ready to see the other side of the coin – you can’t take proper decision on any of your investments.

Let me share Three PLAUSIBLE scenarios.

Let us start with the most negative scenario as they are predicting.

1.  Great Depression part -2: -

Say a great depression part -2 starts in the World over and it last for coming 10 or more years. What will normal people do over a period of time? They will have to sell their GOLD at throwaway prices to get money for Food and other need. So, the gold they are selling you now at higher prices – they will buy back from you are rock bottom prices.

Unlike SMALL investors or Fund managers – they don’t have any time parameters in their minds to earn their return. It is their MONEY and their WORLD. They don’t have to prove it to you or me. They are okay to wait for another 15 years also.

2.  Policy Changes: -

This is a ruthless way to take away your Gold from you. Being a Democratic environment – legally they can’t force you – but they have always their ways to take you for a ride. In this case – you will have to give your Gold for FREE as you have done TAX CHORI – for CASH GOLD buy or you may have to pay some penalties for the same.

Now let us talk about the most positive scenario.

3.  Strong Economic Performance: -

Say the performance of the world economy improves and situations from COVID and WAR also stabilize. In that case, the scenario will be NORMAL and GOLD prices will fall.

Again, Gold and Bitcoin Prices will come down, and they will buy back gold at lower prices from you.

What are the chances that the above will happen?

I don’t know the answer. But if you are not keeping the above kind of scenarios in mind and buying gold or Crypto – you have a lot of faith in your good luck!!

People are trapped big time thanks to their one-track view. Look at the Mazgaon IPO. After the super listing of the Happiest Mind and Route Mobile – this IPO has garnered 500-600 times application in the HNI segment. HNI segment people apply for 40Crs to 500Crs in a single application through IPO financing.

Bigger guys' cost was around Rs.295-Rs.300 per share and the listing happened at Rs.250/-. IPO was at Rs.145. The price came down below Rs.200 on the listing day only. It means their money got stuck or they booked losses on the first day.

Now understand the game of the really big guys – they gave money in the two IPOs and take away all the money in just one IPO.

So, if you think you are smart then nobody can help you. It is a well-designed game – which is played in 100% reverse logic than your normal logic.

Normal logic – good performance is Buy. Reverse logic – good performance is Sell. Because when performance is GOOD then only prices will move up and then only NOVICE people will come and buy your shares!! It is the only time – the smart guy with shares can make money by selling you at higher prices.

Apply this to Gold. If situations are BAD – gold prices move up and they will sell you gold. When situations turn normal – gold prices come down and they will buy gold back from you.

What are the ways out for us?

I am going to discuss them. But the above background must be kept in your mind while you are doing any investments.

Share your views.

Have a Great Time.

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

 

Live With Passion…Invest With Passion.

 

 

Hitesh Parikh.