Since 1971, investors in the gold market have experienced both profits and losses during various periods. Renowned crypto analyst Bill Chen revealed in a recent report that gold suffered losses in 40 percent of the years within this timeframe. Considering the severity of losses as twice that of gains, the total impact of losses amounts to 80 percent, derived by doubling the 40 percent loss years. Conversely, profitable years accounted for 60 percent, reflecting a 60 percent positive sentiment. These figures indicate that from 1971 to the present, the overall emotional and financial experience of gold investors has been dominated by losses. Despite long-term investment, gold has not yielded profits every year, and the intensity of loss years has affected investors both mentally and financially. The fluctuations in gold prices have resulted from various factors, including global economic conditions, changes in the value of the US dollar, political instability, and international financial policies. In 1971, the US government ended the gold standard, allowing gold prices to be determined freely by market forces, marking the beginning of price volatility. It is important for investors to recognize that gold has not always been a safe haven, as its price fluctuations have sometimes led to losses. Moving forward, gold should be considered as part of a diversified investment portfolio to mitigate risks under varying market conditions.
Source: binance
