The Underlying Logic Behind the Surge in Gold Prices: It's Not Speculation, But a 'Hedge Consensus' of Global Capital

Gold prices have surged again! This wave of increase is fundamentally not short-term speculative trading, but rather a 'gold rush' driven by individuals, institutions, and central banks working together.

First, let's look at how aggressive the actions of Asian buyers are—domestically, there was a surge of 4.5 billion in funds entering the gold market in a single month, and Hong Kong tycoons have directly doubled the proportion of gold in their asset allocation to 15%. Against the backdrop of unresolved geopolitical situations and rising expectations of interest rate cuts by the Federal Reserve, both ordinary investors and high-net-worth individuals are treating gold as an asset 'ballast'.

What’s more critical is the increased investment from institutional funds: the holdings of gold ETFs increased at a staggering rate of 164% in the first three quarters, with total scale surpassing 230 billion, setting a historic record. It is important to note that large increases in ETF holdings are never blind following the trend; behind this is the precise judgment of professional funds regarding the trend of 'de-dollarization' and global liquidity easing.

On one hand, global buyers are collectively buying up gold, while on the other hand, the supply of gold itself is rigid. With this supply-demand pattern in place, the rise in gold prices is actually a natural outcome.

For us ordinary investors, whether to follow the trend to buy ETFs or to hoard physical gold, the core consideration should be our own risk tolerance and holding period. Chasing high in the short term can easily lead to pitfalls; a phased layout and pairing with other assets to hedge risks is a more prudent choice. #黄金