Taiwan Gold Price Trend Chart 10 Years of Surge | Can the Bull Market of the Past Half Century Continue?

Why Has Gold Become Investors’ Favorite?

Gold has been an important asset in the economy since ancient times. With its high density, good ductility, and exceptional durability, it has long surpassed its role as a monetary standard and is widely used in jewelry, industry, and other fields. Over the past 50 years, gold prices have experienced frequent fluctuations, but the overall trend has been upward, especially in 2025 when new all-time highs were repeatedly reached, attracting global investors’ attention. So, can this 50-year rally extend into the next half-century? What are the criteria for judging gold prices? Is it more suitable for long-term allocation or short-term trading?

Starting from the Dissolution of the Bretton Woods System: 50 Years of Astonishing Gold Price Growth

To understand modern gold prices, we must trace back to 1971. That year, U.S. President Nixon announced the detachment of the dollar from gold, breaking the Bretton Woods system established after World War II. Previously, gold was priced at $35 per ounce worldwide, but today’s spot gold price has soared to around $4,300, representing a growth of over 120 times in 50 years.

Since 2024, geopolitical conflicts have intensified, and central banks worldwide have increased their gold reserves, pushing gold prices to break new records continuously. The increase in 2024 alone exceeded 104%, and in the first half of 2025, driven by various complex factors, gold prices repeatedly hit new highs.

Four Major Bullish Waves: The Cyclical Pattern of Gold Prices

First Wave: Rapid Rise from 1970-1975

The detachment of the dollar triggered a confidence crisis, causing international gold prices to surge from $35 to $183, an increase of over 400%. Early on, people worried about the dollar’s prospects and preferred holding gold; later, the oil crisis erupted, and the U.S. increased money supply to stimulate prices, further boosting gold. After the crisis eased, gold prices retreated to the hundred-dollar range.

Second Wave: Volatility from 1976-1980

From $104 to $850, an increase of over 700%. This rally was driven by the second Middle East oil crisis and geopolitical turmoil, including the Iran hostage crisis and the Soviet invasion of Afghanistan, which triggered global recession and high inflation. However, due to excessive gains, gold prices sharply corrected after the crisis subsided.

Third Wave: The Decade-Long Bull Market from 2001-2011

The 9/11 attacks triggered global demand for safe assets, pushing gold from $260 to $1,921, an increase of over 700% over 10 years. During this period, the U.S. implemented loose monetary policies to fund large military expenses, stimulating the housing market with low interest rates, ultimately leading to the 2008 financial crisis. Central banks worldwide launched quantitative easing, further supporting gold prices until the European debt crisis in 2011 reached a peak.

Fourth Wave: A New Rally Since 2015

In the past decade, driven by negative interest rate policies, de-dollarization globally, a new round of QE, the Russia-Ukraine war, Middle East conflicts, and other factors, gold prices rose from $1,060 to around $4,300. The 2024-2025 rally has been particularly dramatic, with gold surging over $2,800 at times, creating unprecedented new highs.

Gold vs Stocks vs Bonds: The Truth About Investment Returns

Looking at a 50-year timescale:

• Gold: increased 120 times
• Stocks (Dow Jones Index): from 900 points to 46,000 points, about 51 times
• Bonds: fixed interest income but may face losses during rate hike cycles

However, this is not the full picture. Gold’s returns come from price appreciation, as it does not generate interest; bonds rely on coupon payments; stocks derive from corporate growth. In terms of investment difficulty, bonds are the simplest, followed by gold, and stocks are the most challenging. But over the past 30 years, stock performance has actually been better, with gold ranking second.

Is Gold Suitable for Long-Term Holding or Swing Trading?

The conclusion is: gold is most suitable for swing trading rather than purely long-term holding.

Although the overall trend over 50 years is upward, there have been long periods—such as 1980-2000—where prices stagnated for up to 20 years. Buying during such a period and waiting half a century for returns is unrealistic for most people.

However, as gold mining costs increase each year, the lows after each bull run are gradually rising. This means that even during a bear phase, gold’s downside has a certain support level. Savvy traders should seize clear bull trends to enter, strategically position during sharp declines, and hold with patience during stable periods, rather than blindly holding long-term.

Five Ways to Invest in Gold

1. Physical Gold: Buying gold bars directly, easy to conceal assets and wear as jewelry, but less convenient for trading
2. Gold Passbook: Bank custody certificates, portable but with large bid-ask spreads and no interest
3. Gold ETFs: Similar to passbooks but more liquid, tradable freely, but with management fees
4. Gold Futures: Margin trading supporting long and short positions, leverage amplifies gains, suitable for short-term swing trading
5. Gold Contracts for Difference (CFD): More flexible margin tools, high capital efficiency, T+0 trading, low entry barrier, especially suitable for small investors for short-term trading

Among these, CFDs( have the advantage of flexible trading hours, low initial capital requirements, making them a good choice for retail investors with limited funds. If you expect gold prices to rise, you can go long for profit; if you expect a decline, go short. The dual-direction mechanism allows investors to better utilize market opportunities.

The Balance Between Economic Cycles and Asset Allocation

During economic expansion, corporate profits are optimistic, stocks are favored, while bonds and gold are relatively less popular; during recession, the roles reverse, with gold’s hedging function and bonds’ fixed income becoming the preferred safe havens.

The most prudent approach is to allocate assets evenly based on your risk appetite and investment goals, balancing stocks, bonds, and gold. Events like the Russia-Ukraine war and inflation-driven rate hikes demonstrate that multi-asset allocation can effectively hedge against risks from single assets, making your portfolio more stable.

Conclusion

Gold has proven its value over the past 50 years as an investment asset. But its opportunity lies in grasping market cycles rather than blindly holding long-term. When you hold a diversified portfolio including stocks, bonds, and gold, you can maintain a more resilient investment rhythm even amid market volatility and unexpected events.