I have personally experienced the astonishing changes in the gold market, where the price of gold has increased 94 times over the past fifty years, which is even more impressive than the stock market's 49 times. This is not just a number, but a testament to the changes in the global economic landscape.

Recalling the moment in 1971 when Nixon announced the decoupling of the dollar from gold, gold began its journey of free floating from $35 per ounce. Today, it has broken through the $4000 barrier, a growth that is difficult for anyone to predict.

The fluctuations in gold prices have never been stable. I have observed four major periods of increases: the oil crisis in the early 1970s, geopolitical turmoil in the early 1980s, the global anti-terrorism efforts and financial tsunami from 2001 to 2011, and the wave of de-dollarization globally after 2015. Each crisis has driven gold prices to new highs.

Especially in the past two years, the escalating tensions in the Middle East, new variables arising from the Russia-Ukraine conflict, and trade concerns triggered by the United States' tariff policies have collectively contributed to the continuous surge in gold prices.

But I must remind you that gold is not a suitable investment tool for simply holding long-term. Between 1980 and 2000, gold prices hovered between 200 and 300 dollars for 20 years. If you had held gold during that time, you would have seen almost no returns. How many 20-year periods can one wait in life?

There are various ways to invest in gold: physical gold, gold savings accounts, ETFs, futures, or contracts for difference. I prefer to engage in short-term swing trading through contracts for difference, as this allows for flexible responses to market changes, and even small amounts of capital can participate.

Compared to stocks and bonds, gold returns mainly come from price differences and do not generate interest, so timing for entry and exit is crucial. My principle of selection is "choose stocks during economic growth and allocate gold during economic recession." In the current unstable global situation, gold has indeed shown its unique charm as a safe-haven asset.

The gold market is ever-changing, and no one can accurately predict its direction. However, appropriately allocating gold in a diversified investment portfolio can make your assets more stable.

The best way to arm yourself is to understand history, observe the present, and prepare for the future.