<p>Gold prices have recently reached new highs, becoming a hot topic in the city and attracting many investors to include gold in their asset portfolios. Zhang Dexi, chairman of the Hong Kong Gold Exchange, analyzed in an exclusive interview with the financial column &#34;Million Warehouse&#34; of Sing Tao Daily that gold prices have experienced a decade-long &#34;underperformance against inflation&#34; and a 3 to 4-year sideways pattern, and the current upward wave is a &#34;catch-up&#34; phase. If he were to receive 1 million HKD now, how would he choose to invest? He suggests that gold could account for 20%, plus an additional 10% in silver.</p>
<p>Reporter: Wu Meirong</p>
<p>Recently, gold prices have fluctuated significantly. After approaching a new high of nearly 5,600 USD per ounce at the end of last month, spot gold quickly retreated, stabilizing at around 4,900 USD, still up nearly 15% this year. Known as the &#34;King of Gold,&#34; Zhang Dexi boldly predicts that gold is currently only in the &#34;early to mid&#34; stage of an upward cycle and will continue to rise steadily in the coming years, with a chance to challenge the 6,000 USD mark in the first two quarters of this year.</p>
<h2>Gold Leads, Silver Mostly &#34;Catches Up&#34;</h2>
<p>Zhang Dexi pointed out that the recent surge in gold prices is mainly due to multiple factors such as geopolitical tensions, expectations of interest rate cuts, depreciation of multiple currencies, and central banks actively increasing their gold reserves to support their national currencies and pursue &#34;de-dollarization,&#34; which has driven up precious metal assets. In addition to gold, Zhang Dexi is particularly optimistic about the potential of silver. He stated that based on past experience, bull markets in precious metals are usually led by gold, with silver subsequently &#34;catching up,&#34; often with a more vigorous upward trend.</p>
<h2>Adjusting to the Situation, Gold Allocation Increased to 20%</h2>
<p>In today's complex investment environment, how should the &#34;Million Warehouse&#34; be deployed? Zhang Dexi believes that gold may have only accounted for 5% in past investment portfolios, but under the current circumstances, it should be increased to 20%, with an additional 10% in silver. He explained that when a market crisis occurs or other investment products decline, gold often rises against the trend, and this 20% allocation to gold is sufficient to offset most of the declines in other assets.</p>
<p>In fact, this year, the global geopolitical situation has remained tense, with the United States experiencing strained relations with Venezuela, Canada, and several European countries, while the situation in Iran remains uncertain. At the same time, the market's &#34;de-dollarization&#34; actions continue, as funds flow out of the dollar due to concerns over the large U.S. fiscal deficit and future Federal Reserve policies, causing gold to repeatedly outperform other traditional assets. However, while Zhang Dexi believes that gold prices are &#34;not yet at their peak,&#34; he also reminds investors to act within their means and avoid excessive borrowing.</p>
<p>Related article: China has increased its gold holdings for the 15th consecutive month, with foreign exchange reserves rising by 1.2% month-on-month.</p>
<p>Additionally, Zhang Dexi is optimistic about the prospects of the local property market, as 30% of the funds in this &#34;Million Warehouse&#34; can be used to buy property or invest in real estate stocks and REITs. He believes there are still many treasure-hunting opportunities in the current property market, such as small units in certain areas priced at over 2 million HKD, which can be purchased with a down payment of only 300,000 HKD. Furthermore, to construct a balanced portfolio, another 30% of the funds should be allocated to stocks, with a focus on mainland technology stocks. In addition, 10% can be invested in bonds, such as government bonds or silver bonds, for stable income.</p>
<h2>&#34;Digital Gold&#34; Has a Low Entry Threshold</h2>
<p>Returning to gold, he specifically shared emerging investment avenues for gold. In addition to traditional ETFs and mining stocks, Zhang Dexi also recommends digital gold (GoldZip). This product is registered in Singapore and issued by the Hong Kong Gold Exchange, aiming to lower the investment threshold for gold
&#34;Breaking down 1 kilogram of gold into 'shares', even down to 1 gram.&#34; Zhang Dexi introduced that GoldZip allows trading units as low as 1 gram, with an entry cost of only about $166 (approximately HKD 1,300) based on the current price, and supports 24-hour trading. Investors who save up to 1,000 grams can exchange for physical gold. All gold is of 999.9 purity, with recognized storage and quarterly audits by the Big Four accounting firms, and the issuance volume is announced daily through blockchain, ensuring high transparency.</p>
<p>He described GoldZip as a &#34;new-style monthly gold savings plan&#34; for young people or white-collar workers, allowing them to accumulate wealth by purchasing small amounts of gold through a mobile app as soon as they receive their salary, while also being able to trade gold 24 hours a day.</p>
<p>Related article: Gold craze, Filipino sisters also save gold, HKD 500 monthly gold savings plan, first month receiving gold rice &#34;So happy!&#34;</p>
<h2>Hong Kong Gold Purity and Brand Confidence</h2>
<p>When discussing Hong Kong's role in the international gold market, Zhang Dexi expressed confidence. He pointed out that although the gold purity standards vary by country, such as 995 and 996, the &#34;999.9&#34; standard established in Hong Kong has been widely recognized in the Asia-Pacific region.</p>
<p>&#34;The purity and brand of Hong Kong gold are credible.&#34; He stated that the Hong Kong government is not only establishing a central gold settlement system but is also actively attracting top-notch refineries to set up in Hong Kong. For recycled gold with varying purity, it needs to be refined to the &#34;999.9&#34; standard to be traded internationally. Currently, the Hong Kong Gold Exchange holds licenses for 32 refineries, of which 12 are active, and two meet international standards. Recently, even large refineries from the mainland and Switzerland have actively inquired about cooperation, demonstrating Hong Kong's international status in gold.</p>
<h2>International &#34;Hard Currency&#34; - Buying Gold in Turbulent Times</h2>
<p>At the end of the interview, Zhang Dexi shared a true story to illustrate the value of gold. In 1976, after the &#34;liberation of Vietnam,&#34; North Vietnam successfully captured the South Vietnamese capital, Saigon, ending the Vietnam War. At that time, he was in the United States and saw many Vietnamese refugees fleeing to America. Some exchanged Vietnamese dong for gold bars and tied them around their waists to bring to the U.S. He pointed out, &#34;Wherever you go, gold can be converted into the local currency.&#34; These refugees, with the gold around their waists, were able to start anew one or two years after arriving in the U.S., opening Vietnamese restaurants and various shops, which made him deeply appreciate gold's characteristics as an international &#34;hard currency&#34; that retains value, is easy to convert, and is a portable asset in turbulent times.</p>
<p>Related article: If you had 1 million today, what would you buy? Zeng Yuancang: At an older age, should All In on dividend stocks | Million portfolio</p>

<p>The chairman of the Hong Kong Gold Exchange, Zhang Dexi, stated in an interview with "Million Warehouse" that if there is an investment of 1 million yuan, it is recommended to allocate 20% to gold and 10% to silver. He pointed out that after a decade of stagnation, gold prices are currently in the early to mid-stage of an upward cycle, with the potential to challenge $6,000 in the future. He analyzed that the reasons for the rise in gold prices include geopolitical tensions, expectations of interest rate cuts, and the increase in gold holdings by central banks around the world. Zhang Dexi believes that the allocation to gold should be increased from 5% to 20% to cope with market crises</p>

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If you had 1 million yuan today, what would you buy? "King of Gold" Zhang Dexi: 20% buy gold, 10% buy silver | Million Portfolio