Hahaha... Before, it was all about gold, US stocks, and silver relentlessly reaching new highs. Now, it's not just the crypto world that is being criticized. It's not just the crypto market that is falling; global assets are all in decline. Feeling comfortable now?
But should ordinary people hoard gold? Let's state the conclusion first: yes, but it's unnecessary. Why is it unnecessary? Isn't gold performing well? And silver too. Yes, but you must always remember that gold is a low-volatility asset. Just because gold has doubled in the last year or two doesn't mean it can rise significantly; in the long run, it is a low-volatility asset, and don't get that wrong. And for ordinary people, low-volatility assets are of no use.
You have a capital of 100,000, and some even invest 1,000 a month; what are they doing? No matter how much it rises, it's not enough for a few meals. Gold is a hedge asset against risk assets. Just to give a few examples: from 2000 to 2002, when the internet bubble burst and tech stocks generally fell by 50%, gold rose by 12%; during the global financial crisis from 2007 to 2009, stocks generally fell by nearly 60%, while gold rose by about 25%; in the year COVID-19 started, stocks fell by about 35%, and gold rose 24% for the year.
Whenever the world falls into panic, gold shines. But have you thought about why, since it is so impressive, it hasn't outperformed the S&P 500, NASDAQ, or Bitcoin in the long run? Almost no one has outperformed. That's because when everyone else is impressive, it doesn't necessarily mean it will be impressive; sometimes it even falls. That is its characteristic.
Ordinary people can allocate gold; it's not a mistake, but it's unnecessary because, in the long run, holding gold doesn't significantly aid your asset growth. But if you are wealthy, for instance, with over tens of millions in highly liquid investable assets, should you allocate some gold? Yes, to guard against extreme uncontrollable situations in the world. The probability is very low, but you need to be foolproof. You must ensure that if the world falls apart and your house, car, and money become worthless, you can still be wealthier than most people.
What ordinary people need to consider is only to concentrate their advantageous forces and strive for progress; the 'extremely low probability of falling back into poverty' has nothing to do with you. If you are not rich, how can there be a return to poverty?
$XAU
$BTC
$BNB
