Gold, which has been associated with stability and reliability for centuries, is traditionally considered a "safe haven" for investors. It is often referred to as a defensive asset, and having a small portion of gold in a portfolio for diversification is a sound investment strategy. However, experts caution against placing excessive reliance on gold and relying on it as a sole investment strategy, especially when it comes to large portions of the asset (e.g., 30% or more).

Fantastic predictions and reality:
Recently, there have been increasing predictions of a rapid increase in gold prices, sometimes reaching fantastic figures such as \$8,900 per ounce by the end of this decade. However, experts believe that such predictions are often based on unverified assumptions. Indeed, the high cost of gold can be caused by temporary factors, such as increased geopolitical tensions, rising inflation expectations, or speculative market activities, which are difficult to predict and even more challenging to guarantee their long-term impact.

Long-term growth, but medium-term instability:
It is undeniable that gold investments have delivered impressive returns over the years. Over the past five years, the metal has returned more than 145%, over the past ten years, it has returned around 290%, and over the past twenty years, it has returned more than 600%. These figures are truly impressive and reinforce gold's reputation as an attractive asset.

 However, the expert emphasizes that the long-term upward trend does not exclude significant volatility in the medium term. A striking example is the period from autumn 2011 to winter 2015, when the price of gold fell by more than 40%. This means that even with a generally positive trend, investors may experience significant declines in the value of their investments.

Investor Takeaways:

Gold remains a valuable tool for diversifying an investment portfolio, but its role should be moderate. An excessive bet on a precious metal, especially under the influence of inflated expectations, can be misleading and lead to disappointment. Investors should approach the formation of their portfolios with caution, based on realistic forecasts and taking into account the potential medium-term instability of the asset. Classic portfolio models that involve a balanced distribution of assets remain the most reliable path to achieving long-term financial goals.