You work from nine to five, and even after hours, you're still replying to messages. Investing? You might open an app, scroll for a bit, and then close it—it's not that you're uninterested, but you genuinely can't find the time to research. Yet, letting your salary sit in a low-interest account that doesn't keep up with inflation feels unsettling. Is there an investment you can buy and not have to monitor daily, yet still serves as a solution for asset allocation?
Gold has seen significant volatility lately. In early June, better-than-expected U.S. employment data led markets to believe interest rate cuts were less imminent, causing gold prices to fall. By mid-June, escalating geopolitical tensions pushed gold briefly below $4,100 per ounce, hitting a new low for the year. Then, within days, positive news from U.S.-Iran negotiations sent prices rebounding rapidly above $4,300 per ounce. Fast rises and fast falls—this can indeed be nerve-wracking for someone who only has a few minutes a day to check the markets. But don't dismiss it just yet. Understanding one key point is enough: Why did gold prices fall this time?
In simple terms, the short-term decline wasn't about gold itself, but about "interest rate cut expectations." Think of it like a seesaw: when expectations for rate cuts sink, gold rises; when they reverse, gold falls. Short-term sentiment passing doesn't mean the long-term logic has changed—just like a project delay this month doesn't mean annual KPIs are doomed.
What truly supports gold's medium to long-term trend is a more fundamental force: global central banks are systematically buying gold. To use an analogy, the market is like a ship. Retail investor money is like waves—coming and going quickly. Central bank money is like ballast, sitting at the bottom of the ship, not easily moved. Your goal shouldn't be to chase the waves, but to stand with the ballast.
According to the latest data from the European Central Bank, by the end of 2025, gold's share of global official reserves reached 27%, surpassing U.S. Treasury bonds at 22% for the first time, making it the world's largest reserve asset. That year, global central banks net purchased approximately 850 tonnes of gold, equivalent to over $100 billion, and net bought another 244 tonnes in the first quarter of 2026.
The world's most professional "big buyers" are voting with real money—do you think they're looking at two-day price movements or long-term trends?
Central banks buy gold to diversify risk and secure assets, meaning the demand side for gold has a long-term, stable "buyer base." It's not just central banks; individual investors are also accelerating their entry. In 2025, global private gold investment demand approached 2,200 tonnes, roughly double that of 2024. In the same year, global gold ETFs net purchased about 800 tonnes of gold—more and more working professionals like you are allocating to gold through "low-effort" methods like ETFs. Essentially, an ETF packages gold into a product traded on stock platforms. Buying a share is equivalent to indirectly holding gold, without the need to queue at a bank for physical bars or worry about storage.
So why should working professionals allocate to gold? Remember one simple logic: Gold doesn't move in sync with stocks and bonds. Stock market movements depend on corporate earnings, bond performance on national credit—gold doesn't follow these; it has its own rhythm. This "you go your way, I go mine" independence is gold's greatest value in a portfolio. For analogy: imagine you're managing three projects simultaneously. Two are core company business, one is for an independent client. When core business is doing well, the independent client might be average, but if core business hits a problem, the independent client can provide a safety net. Adding some gold to your portfolio is like creating an additional, uncorrelated income stream.
That said, gold is not an asset that only goes up. In 2013, it fell about 28% for the year. From its 2011 peak to its 2015 trough, the maximum drawdown exceeded 40%. Even during recent strong trends, it corrected nearly 20% in 2021. Therefore, the core idea isn't to "bet on a gold surge," but to have an asset in your account that doesn't move in lockstep with stocks and bonds, thereby reducing overall portfolio volatility.
For those without time to watch the markets, the right approach to gold is simple: no need to time the market, no need to check daily. Set an amount you're comfortable with and invest it regularly, like an automatic monthly mortgage deduction. Invest consistently and let it be—the energy you save is better spent on advancing your career and increasing your income.
The E Fund Gold ETF (159934) tracks the domestic gold price (Shanghai Gold Exchange Au99.99 spot contract). Investors without a securities account can consider the ETF feeder fund—E Fund Gold ETF Feeder Fund (Class A 000307 / Class C 002963).
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