1. Gold has certain hedging properties. In the environment of market risk and inflation, gold can effectively spread investment risks, preserve value and save, and is still favored by global investors.
However, the price of gold fluctuates greatly. The price of gold is greatly influenced by the global economic environment and market sentiment, and the price fluctuates greatly. If you pursue stable income, then the risk of investing in gold is relatively high.
3. There is a certain correlation between gold and stocks. Research shows that during the global financial crisis and market turmoil, the correlation between gold and stock prices is high, which will reduce the overall diversification effect of portfolio. When the market is stable, the two tend to be irrelevant, and the allocation of gold can improve the efficiency of portfolio.
4. Gold is an investment variety for value preservation. Due to large price fluctuations, gold is more suitable for medium and long-term investment than stocks. It is difficult to get more benefits from price fluctuations in the short term. The income of gold mainly comes from the long-term appreciation space.
5. The massive buying by the central bank may depress the market outlook. The massive buying by central banks and other institutions may push up the price of gold in the short term, but then the price will be suppressed, which will have an impact on the subsequent investment performance.
Therefore, on the whole, gold is a conservative investment tool, which is more suitable as a hedge and crisis hedging asset in the portfolio. But the price fluctuates greatly, so it is not advisable to expect higher returns in the short term. There is a certain correlation between gold and stocks, and the allocation ratio of the two should be considered. The market behavior of institutions such as the central bank will also have an impact on prices.
For young people, a certain proportion of gold can be properly allocated to improve the stability of the portfolio. However, high-growth assets such as stocks are still the main investment, and gold only plays the role of portfolio hedging. On the whole, whether gold is suitable for investment depends on personal risk preference and investment objectives.