Recently, the global enthusiasm for gold investment has soared, with the scale of dollar-cost averaging, accumulation, and various gold ETFs continuously increasing. What is driving this trend behind the scenes? Simply put, the global economy is full of uncertainties. As national debts pile up and geopolitical conflicts persist, traditional safe-haven assets like gold have completely turned around—from being considered optional allocations to becoming a necessary component of asset portfolios.

Why is gold so popular? The key lies in its "dual identity." It is both a commodity and a currency attribute, recognized worldwide as the ultimate means of payment. Its supply is not monopolized by any single central bank, making it the ultimate hedge against currency devaluation. More importantly, central banks around the world are buying—our country has increased holdings for 11 consecutive months, and other nations are following suit. Gold is gradually evolving into a core element of strategic reserves. Under the trend of de-dollarization, its status will only become more prominent.

So why have gold prices risen so dramatically? Don’t think it’s just by chance. The Federal Reserve has started a rate-cutting cycle, which lowers the holding costs of gold; the US dollar itself is losing credibility due to fiscal deficits, and its purchasing power is declining; global gold mine supply cannot meet demand in the short term, making it impossible to fill this gap. The combination of these three factors has caused gold prices to surge—since 2025, spot gold has risen nearly 68%, breaking through $4,400 per ounce. This figure alone explains everything.

From an investment perspective, what is the utility of gold? First, it can truly hedge against inflation and market volatility, providing a "protective cushion" for your asset portfolio. During market crashes, gold often rises countercyclically—that’s where its value lies. Second, the investment channels are very flexible—if you want physical gold, buy physical gold; if you prefer more convenience, buy ETFs; if you want to participate in value mining, look at gold stocks—there’s always a suitable option for you. Third, the domestic market trading volume is increasing, liquidity is sufficient, and buying and selling are very convenient.

Ultimately, reasonably allocating a portion of gold assets can both enjoy long-term appreciation and effectively diversify investment risks. This is no longer a new idea, but in today’s era, it is indeed a wise move for prudent investing.