Over the past two years, international gold prices have mirrored a "rollercoaster" ride, repeatedly surging to new heights amidst significant volatility. From the steady appreciation of three decades ago to the accelerated gains of recent years, and now its current "parabolic" state, gold has become the undeniable focal point of global capital markets.
While the market is driven by cold hard numbers, in a volatile investment landscape, insight and temperament are often more valuable than the gold itself. Addressing the anxieties of "Has gold peaked?" or "Am I buying at the top?", investors must look past the market noise to understand the core logic supporting gold’s long-term upward trajectory.
Here are six fundamental factors—"pillars of confidence"—for gold investors:
From the protracted Russia-Ukraine conflict to the intense instability in the Middle East, global geopolitical risks have entered a high-frequency phase. Regional wars and border frictions show no signs of abating and, instead, threaten to spill over. As the ultimate safe-haven asset, as long as the "dove of peace" remains grounded, gold will continue to soar.
The new wave of tariff wars that commenced in April 2025 has significantly impacted U.S. Treasury and dollar credibility. Against a backdrop of heightened global economic uncertainty, central banks and private investors in Singapore, Vietnam, India, and China have shifted into "accumulation mode." This robust buying pressure has formed a solid floor for gold prices.
Unilateralism and shifts in U.S. policy have rendered the global trade environment highly unpredictable for the coming years. The long-term strategic competition between the U.S. and China has become a permanent fixture. Regardless of who occupies the White House, the tone of confrontation remains. This long-term instability acts as a natural propellant for gold.
Historical data shows that gold prices consistently exhibit a "more gains, fewer losses" trend. Despite short-term fluctuations, its function as a store of value remains irreplaceable. Looking back ten or twenty years, the amount of gold one could purchase with the same currency has shrunk drastically, proving gold’s superior performance in hedging against inflation.
Financial sanctions resulting from the Russia-Ukraine war have sensitized nations to the risks of over-reliance on the U.S. dollar. From the BRICS nations to various central banks, reducing U.S. Treasury holdings and increasing physical gold reserves has become a strategic trend. The dollar’s share in global settlements has contracted from 70% a decade ago to 54% today, highlighting gold’s rising status as a core diversified reserve asset.
Behind the gold market lies a massive community of interest—from global central banks and long-term collectors to institutional traders. Gold has never dropped to zero value, nor will it ever become worthless paper. This universal consensus on value determines its resilience as a "hard currency."
Investing in gold is not gambling; temperament is key. I recommend that investors adhere to the following principles:
Avoid Leverage: Do not borrow to invest or blindly increase leverage. Ensure your holding capacity remains within a controllable range.
Long-term Allocation: Gold is best suited as the "ballast" of an asset portfolio, not a tool for overnight wealth.
Diversified Portfolio: Never put all your eggs in one basket. Diversification is the only way to mitigate systemic risk.
Conclusion: Face market fluctuations with a calm mind. We wish every investor steady progress and continued "golden" successes in the markets to come.
Vietnam