Bridgewater China: Despite the clear rise in gold prices, we still believe it has value for allocation.

Bridgewater China's article pointed out that although the price of gold has risen significantly, we still believe that it has allocation value and can provide diversification benefits to investment portfolios. It is worth noting that investors have not significantly adjusted their gold allocations, and the long-term structural factors that enhance the attractiveness of gold do not seem likely to weaken in the short term. Persistent inflation concerns, high government debt, and escalating geopolitical tensions are collectively undermining the value of fiat currencies. The price trend of gold reflects that central banks and other investors globally are increasingly using gold to hedge currency risks. In other words, there is a large amount of capital that seems willing to buy gold at current prices, even if they have to bear the opportunity cost of zero "interest income", in order to hedge against the risk of significant capital losses caused by geopolitical conflicts or currency devaluation.