If you want to buy gold for the first time, don't panic; everything follows a traceable path. Gold prices have started to soar again, new buyers are flooding in, established gold mining companies are breaking records, and the global market's tension is, as usual, pushing up the demand for gold—like the last lifeboat in a gradually sinking market.

You may feel a bit behind, but it's actually not too late. The important thing is to understand the current market dynamics, and we are here to help you sort it out. Investors' concerns stem from war, inflation, unclear central bank policies, and ambiguous interest rate decisions. These factors have led to a surge of funds into the gold market, with the NYSE Gold Mining Index breaking its historical high for the first time since the European debt crisis and the U.S. credit rating downgrade in 2011.

The current market volatility mainly stems from the Middle East, the Russia-Ukraine conflict, and the impact of internal political issues in the United States on monetary policy. The future direction of interest rates is no longer clear, which further exacerbates market uncertainty.

Mining stocks have performed well. Major companies like Newmont, Agnico Eagle Mines, Wheaton Precious Metals, and Barrick Mining have seen their stock prices surge over 80% this year. Newmont's earnings have doubled, and analysts expect a further 50% increase this year. It hasn't been this high in three years. Other companies like Agnico Eagle and Barrick have also achieved good results, attributed to gold prices near $3600 per ounce.

In the face of this situation, investor sentiment is very important. Blair duQuesnay of Ritholtz Wealth Management believes that gold is a classic investment that is always ready for "rain or shine". She is not alone, as Sameer Samana also points out that gold performs exceptionally well during economic downturns. Central banks around the world are stockpiling gold, coupled with geopolitical pressures, leading to sustained strong demand.

As for how to invest in gold? You have two options: buy physical gold or invest through financial products. It is usually recommended to choose gold ETFs, such as SPDR Gold Shares and iShares Gold Trust. They fluctuate with gold prices, have low costs, and are easy to trade. However, different financial advisors have varying opinions on the proportion of gold to hold, with many suggesting it should not exceed 3% of the investment portfolio, questioning the current phase of rising gold prices.

Mining companies are controlling costs and protecting profits, which is also key to this price increase. However, how the future will unfold remains to be seen.

Regardless, gold is always a topic of great interest. What do you think? Do you have similar investment experiences? Feel free to leave a message to chat.