ZHI-TECH(SZ:300785) Sou Hu Cai Jing·2025-10-13 10:03Core Viewpoint - The article discusses the unique position of gold as an investment and its historical significance, contrasting its appeal as a safe haven with the skepticism of prominent investors like Warren Buffett, who criticize its lack of cash flow generation [1][18]. Group 1: Characteristics of Gold - Gold is valued for its stability and scarcity, which align with the core needs of currency—preservation of value [3][4]. - Gold does not decompose or react chemically, maintaining its original form over time, unlike silver which can tarnish [3]. - The difficulty of gold mining, taking 15 to 20 years from exploration to production, contributes to its scarcity, making it a "hard currency" [4]. Group 2: Factors Influencing Gold Prices - Gold prices are primarily influenced by three factors: macroeconomic uncertainty, the elasticity of the US dollar, and liquidity in capital markets [7]. - During times of crisis, gold typically sees price increases, but this is not guaranteed; for instance, gold prices fell during the 2022 Ukraine conflict due to Federal Reserve interest rate hikes [8][10]. - The relationship between gold prices and the US dollar is crucial; a loose monetary policy tends to drive gold prices up, while a tight policy can suppress them [11][10]. Group 3: Investment Considerations - Gold serves as a hedge against asset volatility rather than a means for profit, making it more suitable for high-net-worth individuals who can afford to hold it long-term [13][17]. - Ordinary investors with limited assets may find gold to be a burden rather than a benefit, as they lack the financial cushion to withstand price fluctuations [16][17]. - The article emphasizes that gold should not be viewed as a speculative investment but rather as a tool for preserving value in an era of currency devaluation [18].