Gold Investment Essentials (I): When to Buy Bonds? When to Buy Gold? When to Buy Mining ETFs?

Buying at the right time is more important than buying the right asset.

In the world of investing, timing isn’t everything, but entering at the wrong 'season' can make even the best assets a source of stress. Bonds, gold, and gold mining ETFs are like different seasons of the year, each with its own 'best观赏期'.

Today we'll clarify these three key moments for you while answering a core question: If you want to capitalize on the potential rise in gold, why are gold mining ETFs often a better choice than leveraged gold products?

Part One: The 'Golden Buying Moments' for Three Types of Assets

1. When should you buy bonds?$E Fund (HK) Short-Duration Bond Fund (HK0000625282.MF)$$E Fund (HK) Short-Duration Bond Fund (HK0000625225.MF)$$E Fund (HK) Select Bond Fund (HK0000672128.MF)$

Key Timing: Economic recession + downward interest rate channel

Bonds are defensive assets that perform best under the following conditions:

· During economic weakness: When the PMI (Purchasing Managers' Index) remains consistently below 50, inflation is low (e.g., PPI down year-over-year), and everyone feels it’s hard to make money, funds will flow into the bond market as a safe haven, driving prices up.

· During the rate cut cycle: When the central bank starts to cut interest rates, existing bonds on the market (with higher interest) become more valuable.

· Simple rule of thumb: When you see no bright spots in economic growth and news often mentions 'RRR cuts and rate cuts,' it is a favorable environment for bonds.

2. When to buy gold (physical gold ETF)? $Gold Futures (AUG6) (GCmain.US)$

Core timing: Rising risk aversion + declining real interest rates + signs of stagflation

Gold’s buying opportunities usually come with 'fear' and 'turning points':

· During crises: Geopolitical conflicts, bank bankruptcies (e.g., Silicon Valley Bank incident), or when global central banks start hoarding large amounts of gold, gold’s 'safe haven' function becomes prominent.

· End of the rate hike cycle/just before rate cuts: Gold is a zero-yield asset. When the market expects the US rate hike cycle to end and the rate cut cycle to begin, the US dollar weakens, and gold strengthens.

· Signs of stagflation: If the economy stalls (businesses struggle) but prices continue to rise (inflation), gold is one of the few assets that can preserve value in such harsh conditions.

3. When to buy gold mining ETFs? $EFUND GOLD MI ETF (02824.HK)$$EFUND GOLD MI ETF-R (82824.HK)$$EFUND GOLD MI ETF-U (09824.HK)$

Core timing: Confirmation of a gold bull market + increased risk appetite + desire for 'excess returns'

This is the variety among the three that focuses most on 'timing of entry.' The best time to buy a gold mining ETF is when you confirm that the price of gold is about to rise, and you want to amplify your returns:

· Gold has broken through a key price level: When the price of gold has already broken through important resistance levels (such as hitting a record high), and you are optimistic about its continued rise, the 'leverage effect' of mining stocks will help amplify your returns.

· Market sentiment shifts from 'risk aversion' to 'greed': If it's purely for risk aversion, people buy physical gold. However, if the market starts buzzing about significantly increased profitability of mining companies, improved cash flow, and capital flowing into the mining sector, this indicates the market has entered a more aggressive phase.

· When valuations lag behind the price of gold: Data shows that the current ratio between gold mining stocks and the price of gold is still significantly lower than historical highs. If the price of gold remains at a high level, mining companies have significant room for valuation recovery and catch-up gains, which presents an excellent buying opportunity.

As the only gold mining ETF currently available in Hong Kong, the E Fund Gold Mining ETF (2824) aims to closely track the Solactive Global Gold Mining Select Index, covering 30 leading stocks across four major gold-producing regions in China, Canada, the US, and Australia, including giants like Zijin Mining,$ZIJIN MINING (02899.HK)$Zhaojin Mining Industry$ZHAOJIN MINING (01818.HK)$Wait for domestic gold giants, also covering Newmont.$Newmont (NEM.US)$Barrick Gold Corporation$Barrick Mining (B.US)$, as well as overseas quality entities such as Newmont and Barrick Mining, balancing geographical diversification with leadership concentration advantages.$Hang Seng Index (800000.HK)$$NASDAQ (NASDAQ.US)$

Important Notice: The issuer of this content is E Fund Asset Management (Hong Kong) Co., Ltd. This content does not constitute an invitation or recommendation to invest in fund units. Investment involves risks, and fund prices can go up or down. Before investing, investors should carefully read the fund prospectus (including the 'Risk Factors' section) regarding investment risks associated with the fund. This content has not been reviewed by the Securities and Futures Commission of Hong Kong. For detailed important notices and disclaimers regarding E Fund (Hong Kong) Solactive Global Gold Mining Select Index ETF (2824), E Fund (Hong Kong) Short-term Bond Fund, and E Fund (Hong Kong) Select Bond Fund, please visit the E Fund (Hong Kong) website: https://www.efunds.com.hk/sc/products/.

$Gold Futures (AUG6) (GCmain.US)$$SD GOLD (01787.HK)$$WANGUO GOLD GP (03939.HK)$ $Agnico Eagle (AEM.US)$$CHIFENG GOLD (06693.HK)$$Barrick Mining Corp (ABX.CA)$$AngloGold Ashanti (AU.US)$$Kinross Gold Corp (K.CA)$

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