Recently, people have been asking me whether it's still worth buying jewelry or investing in gold. To be honest, that's a good question because gold prices have been soaring since the end of 2023, jumping from $2,700 to $4,000 in just over two years, and the increase has indeed been astonishing.

I’ve observed an interesting phenomenon: gold reaching new all-time highs actually reflects a deeper issue—global investors' confidence in traditional assets is shaking. It’s not that gold itself is so magical, but that the appeal of alternatives is declining. Since 2020, the U.S. has implemented unlimited quantitative easing, followed by aggressive rate hikes. This combination has damaged trust in the dollar and U.S. Treasuries. Investors are starting to seek safe-haven assets, and gold naturally becomes the top choice.

Another key factor is the modification of the Basel Accords. Gold has been upgraded from a third-class capital to a first-class asset, meaning banks now regard gold as equally important as cash and government bonds. Compared to the continuously printed paper currencies, gold’s scarcity and mining costs are increasing every year, making its hedging potential much stronger. That’s also why central banks and financial institutions have been aggressively buying gold over the past two years.

Is it a good time to buy gold now? My view is that gold still holds investment value, especially against the backdrop of a weakening dollar. But I have to be honest—prices are no longer cheap. According to analyst forecasts, the average price this year might be around $4,275, with growth slowing down and volatility possibly increasing.

Why is that? Because gold now faces more competition. Bitcoin has already broken through $100k, and U.S. Treasuries at low yields are also attractive, which diverts funds. So rather than blindly chasing higher prices, it’s better to wait for a pullback. From a technical perspective, gold prices are currently within an upward channel, and the lower Bollinger Band is an ideal entry point. As long as the price dips to that level, it’s a good buying opportunity for long-term investors.

Regarding the most cost-effective way to buy, I recommend individual investors avoid physical gold jewelry or bars because of large bid-ask spreads, poor liquidity, and high storage costs—it's simply not worth it. Futures and options have high barriers and are not suitable for retail investors. The most convenient option is gold CFDs, which track spot gold prices, offer flexible trading, low costs, and don’t require monthly rollovers like futures or the complexity of options.

Overall, gold remains an important asset for hedging market uncertainties. As long as global economic uncertainty persists, central banks will continue holding gold, supporting its long-term price. But in the short term, buying jewelry or gold investments now requires timing. My advice is not to rush into buying now; wait until the price returns to the lower Bollinger Band for entry, which will lower your costs and reduce risks. All types of investors should allocate some gold assets, just choose the right tools and timing.