Gold Investing on The Stock Market: The Case For Buying Today

[00:01] you a logical arguments why I believe that right now is a good time to invest in gold. Now, to bring you up to speed, gold had an amazing run in 2025 and it gold had an amazing run in 2025 and it peaked in early 2026. But recently, the

[00:15] correction. So earlier this year, gold reached a record high of approximately $5,500 an ounce. So we're talking about the spot price here. Today, gold is trading closer to $4,000

[00:28] So that means that gold has fallen approximately 26% from its peak. And I'll just say that whenever an asset declines and it suffers a significant correction like this, investors tend to split up into two groups in terms of

[00:42] So the first group usually is going to say that, "Okay, gold is crashing. The rally is over." And then the second group's going to say, "You know, gold is finally becoming affordable again. So I'm going to buy the dip." So today,

[00:55] let's examine the situation and answer a very simple question. Is this decline a warning to stay away from gold or is it creating a long-term buying opportunity? So the first thing that we need to acknowledge is the charts, the prices.

[01:10] is a longer-term chart. The blue line represents the performance of the S&P 500 and the goldish line, that represents the price of gold. Now, in the past 25 years, the S&P 500 has gone up approximately 461%.

[01:26] And in the past 25 years, the price of gold, even after the recent correction, has gone up 938%. So in other words, in the past 25 years, So in other words, in the past 25 years, gold has outperformed the S&P 500 by

[01:40] So is this a fluke or is this a, you Well, I mean, you can take a look at the chart for yourself. For the majority of the past 25 years, gold has been beating the S&P 500. You know, for many people,

[01:54] this is actually surprising to them. But that's why as a long-term investor, when I see a correction in gold, I get excited and I see a buying opportunity. Okay, now I want to pull up the one-year chart for you. And as you can see over

[02:07] the past 12 months, the performance of the S&P 500 and gold have been nearly equivalent. But obviously gold ran up hard in Q1 of 2026 and now it's corrected. And this is of course this is not a small dip, it's

[02:20] a significant correction. Now I want to show you the five-year charts and I just entered a substantial short-term decline. But here's the thing, gold may still be inside a much larger long-term bull

[02:34] actually extremely important to Because long-term bull markets, they're rarely going to move upward in a that. I mean, if you're an experienced investor, you already know this. You

[02:47] market, they're going to include corrections, sharp corrections, periods of consolidation, and moments when, you know, investors are questioning whether the original thesis is still valid. So the purpose of this video, it's not

[03:01] to assume that gold's going to immediately recover. You know, it could crystal ball. Like I'm not promising you that you're going to get rich quick. So determine whether the reasons for owning

[03:15] gold have weakened enough to justify abandoning it. Listen, I just want to say that most investors understand the phrase buy low and sell high. I'm sure understand that, it's very straightforward, right?

[03:28] But I just want you to know there's a difference between understanding that and actually applying that. A real-life example, let's just say that be healthier, you already know what you need to do. You have to eat a healthier

[03:40] diet, you have to exercise. You understand that concept, you know this, but that doesn't necessarily mean that you're going to apply it and most And trust me, like everyone that smokes

[03:52] can't blame majority of them. Like almost 100% of people, those people, they know it's not good for them, but they do it anyways. want to buy high and sell low, like that's your

[04:08] business. That's none of mine. So, most people understand the concept, So, most people understand the concept, buy low, sell high. But emotionally, many people do the opposite. You know what happens when an asset is rising

[04:20] every week and setting record highs? People feel comfortable buying it, right? But when that same asset falls 20%, 25%, they become afraid. And fear leads to selling. Now, this creates a strange

[04:35] contradiction. Because investors say that they want lower prices, but when lower prices finally arrive, they assume that something must be wrong. gold. You know, it could be. Like it's not impossible. You know, sometimes an

[04:49] asset falls because it's fundamentals have permanently deteriorated. So, a good question to ask is, is the long-term investment thesis for gold still intact? If the thesis is broken, then this lower

[05:03] price it may be a trap. But if the thesis remains intact, then a major correction like this, it can improve the risk and reward opportunity for an Now, let's review this. Why is the price of gold fallen?

[05:17] Well, it's because gold has recently faced several major headwinds. Interest treasury yields have increased, and the US dollar has strengthened. So, those are I'd say more of the primary reasons for gold's fall. So, the situation is

[05:31] that ever since the war with Iran broke out, investors have become concerned that higher energy prices will keep inflation elevated. So, what's the Well, if we have higher energy prices and higher inflation, then that's It's

[05:45] to force the Federal Reserve to maintain higher interest rates for longer to I guess attempt to suppress inflation. Now, that's going to be a headwinds for gold because gold thrives in a low interest rate environment, which is I

[05:59] stocks, you could say the same thing for real estates, etc. Now, that doesn't mean that gold can't go up with today's interest rates. It headwinds, a more challenging environment.

[06:12] But the thing is that if interest rates keep going higher, I mean we've reviewed videos, it's going to cause major problems for the US's fiscal situation. And that's actually tied to this

[06:24] headwinds that Treasury yields have increased. 30-year Treasury bond, and this is a 5-year chart. So the interest rate on the 30-year Treasury bond has now hit 5.11%.

[06:37] the US government has to pay to borrow money for newly issued debts for 30-year Treasuries. And as you can see, it was around 2% just a few years ago. And when it was at 2%,

[06:50] investor mentality was why should I buy a Treasury bond that's going to pay a You know, that's stupid. I'm just going to buy gold. So lower interest rates, it promotes purchasing of gold. But now at 5.11%, more investors are

[07:06] money in Treasury bonds because they're paying better. And of course, this going to put pressure on the price of gold and especially over the shorter duration. Again, this doesn't mean that gold can't go up in this type of environment, but

[07:20] it's still headwinds. And what's been happening is that due to higher Treasury yields, the US dollar has strengthened, which is a headwinds for gold and also other commodities. Now, generally gold is considered to be

[07:33] a safe haven asset, and I'm sure that most people are aware of that. However, sometimes the market becomes more focused on interest rates, the dollar, But, in the short term, like these forces, they can outweigh safe-haven

[07:47] demands. But, the thing is that these short-term necessarily the same thing as a broken long-term thesis. Now, I want to show you this. Gold has experienced large corrections in previous long-term

[08:01] So, to be clear, we're talking about corrections within an ongoing bull market from peak to bottom. So, what I'm saying is that this data, it doesn't include when gold enters into a bear market, and I don't believe that

[08:15] this everything bubble and all this money printing. So, as you can see, gold experienced multiple severe declines before eventually reaching much higher levels. Again, we peaked in early 2026.

[08:30] declined sharply, consolidated for months, and appeared to have lost But, those corrections did not automatically end the broader trend. But, I just want to play devil's advocate. Like, this does not prove that

[08:44] gold's going to recover this time. Like, history never provides guarantees, but it does show that a 20% or 30% correction is not incompatible with a continuing long-term bull markets. The next question is, what has

[08:57] fundamentally changed since gold reached its peak? Interest rate expectations have changed, bond yields have changed, investor positioning has changed, and these are real short-term negatives. But, what

[09:09] about the structural reasons why investors have been buying gold? Has the investors have been buying gold? Has the US eliminated its fiscal deficits? And, no. It's expected to be worse this year

[09:21] than last year. Has government debt started shrinking? And the answer is no. It's grown to 39.6 trillion dollars. We're going to be at 40 trillion soon. Has federal interest expense returned to

[09:34] And the answer is no. It's been getting worse every year for the past 6 years. banks stopped diversifying their reserves? And the answer is no.

[09:46] Like if you didn't know, China just purchased 15 tons in June. So, that was their highest monthly accumulation since October of 2023. Now, China's been buying gold for 20 months straight now. And how about this

[09:58] one? Has the global monetary system suddenly become more disciplined? Well, I guess it's a question of opinion, but I would say no. Like the global leader, the USA's Federal Reserve, continues the money

[10:11] printing and the M2 money supply is at record highs. So, the short-term environment for gold, yes, it's become more difficult. But many of the long-term forces that originally supported gold remain in

[10:23] Listen, I just want you to remember that no fiat currency has ever survived in no fiat currency has ever survived in the history of mankind. You know why? peop- well, it's just my opinion, the people are catching on.

[10:38] But let's be real. The US dollar is not going to disappear overnight. It remains the world's reserve currency. But central banks, they don't have to abandon the dollar for gold to benefit. They simply need to diversify more of

[10:51] And this is that's exactly what they've been doing. So, the US dollar may be the reserve currency of the world, but gold is now the reserve assets of the world. And just take a look at the smart money.

[11:03] Central banks have been buying roughly 1,000 metric tons of gold every year for the past 4 years. So, that's about double the pace of the previous decade. other countries, and central banks, they're thinking in decades. They're not

[11:16] thinking about uh price fluctuations next month. They're not short-term. They're not going to be short-term minded. doesn't guarantee higher prices for gold, but it does suggest that gold

[11:29] continues to play an important strategic role by central banks around the world. the way I see it. Don't try to pick the bottom. Like nobody knows where the bottom is. If they say they do, then I'm sorry to tell

[11:44] price of gold, it could bounce tomorrow or it could fall another 10%. nobody knows. If you say that you can use technical tell you that I've never met I've never met a trader with 100% win rates.

[12:02] you understand what's going on with monetary policy and the fiscal situation, then you know that long-term, the probability that gold is going up denominated in US dollars is as close as you can get to 100%.

[12:17] So, let me use repetition for the sake of emphasis, long-term, not short-term. So, the way I see it, gold is down about 26% from its peak. Don't try to guess the bottom, just dollar cost average in. You already know that you're not buying

[12:33] at the top. And in my opinion, the investment thesis remains intact. Now, how can you get gold exposure? So, there's several ways that investors can So, you're going to have the option for physical gold, gold ETFs on the stock

[12:49] stock market, and then you have royalty and streaming companies on the stock markets. So, I actually own all four of these types of investments. You know, each has their pros and cons, but

[13:02] a separate video. Listen, if you're a long-term investor, come join our see what I'm investing in for gold exposure, you can see what I'm investing in outside of precious metals. And we have a private chat room, you can

[13:16] going to leave a link for you down below. Thank you so much. below. Thank you so much. I wish you a very nice day. Take care.