Recently, the surge in gold prices has been fierce, which ironically makes people a bit uneasy. Looking back at history, I realized that almost every major gold bull market has been accompanied by a global financial crisis.

The 1974 oil crisis and the 2008 subprime mortgage crisis are prime examples—gold prices soared wildly before the crises and completed a reshuffle during the crises. What about the current situation? The biggest variable is the direction of the US dollar. Is it going to repeat the collapse-style devaluation of the 1970s, or follow the old pattern of "buy the rumor, sell the fact"? This will directly impact asset allocation in 2026 and beyond.

Two realities to be cautious of:

First, there are indeed pitfalls in the short term. In the early stages of a crisis, the market will stage a mass exodus—holders rush to sell various assets for cash, and gold prices may be hammered down first before soaring again. Timing is crucial.

Second, the real opportunities are not during the frantic rise of gold. Having reserves allows for a calm response. Instead of obsessing over gold’s safe-haven properties and panic premiums, it’s better to position in high-quality assets that have been beaten down to "bloodied chips"—digital assets like Bitcoin often hold the greatest opportunities at historical lows.

The current surge in gold essentially serves as a market warning signal. The smartest move is not to follow the crowd during the frenzy, so you don’t become the last one to take over.