In 2005, the stock market began to soar with the changes in the housing market. The combination of blind optimism and flood of liquidity will inevitably produce bubbles. In addition, with the approaching of the 2008 Olympic Games, the public's expectation of RMB appreciation is strengthened, and the expectation of bull market is also getting stronger and stronger. At the same time, the transfer of global manufacturing industry to China also makes the raw material prices soar, production costs rise, consumer goods prices rise, and negative interest rates become a reality. Under the situation that domestic inflation is beginning to appear and asset value is shrinking, how should investors use gold to keep asset value stable, seize the bull market opportunity of gold price and gain investment income in the gold market?

First of all, investing in gold requires abandoning speculative psychology. Judging from the role of gold, because its value is relatively stable, it is impossible to become an investment tool for profiteering in the short term. Perhaps many people are used to the operation of "fast forward and fast out" in the stock market, to getting rich overnight by speculating warrants, and even to arbitrage trading in the foreign exchange market. However, if investing in gold, investors should focus on long-term security, asset security and risk control of overall price fluctuations. Because once a single investment project with huge risks fails, its losses are often irreparable.

Secondly, investing in gold requires a sense of combination, not "going it alone". Investing in gold does not conflict with investing in other assets, and should cooperate with each other. According to the different risk preferences of investors, the proportion of gold in the portfolio is different, but the overall range should be kept at 5%-30%, and the portfolio risk should be controlled within a reasonable range. This operation is to use the relative stability of gold value and its negative correlation with other asset prices under certain circumstances to reduce or hedge risks.

Finally, investing in gold requires choosing the right products. Gold is a special product with both commodity and currency attributes, and the gold market is composed of physical objects and many derivative products based on physical objects. So to a certain extent, it does not have the consistency of trading objects and trading methods like stocks, futures and foreign exchange markets, so there are relatively many product forms to choose from. When making investment decisions, investors should make effective choices according to their own needs and product characteristics in order to achieve the best combination.