LY THANH PHUONG
In 2025, the world gold price continues to break records, causing the global financial press to simultaneously talk about “a new gold cycle”. From major newspapers such as Bloomberg, CNBC to the Wall Street Journal, every newspaper is talking about gold – an asset that seems classic but is becoming popular again.
For the Vietnamese community in the US, especially in California, where more than half of overseas Vietnamese are concentrated, this story also creates a lot of interest. Many Vietnamese in the US still have the habit of considering gold as a “safe haven”, while the younger generation asks the question: “Should I buy gold, or is it best to just leave money in some security type like mutual funds, stocks, or bonds?”
This article will take you through history, why people buy gold, the reasons for gold’s increase and the price of gold over time, forms of gold investment, compare gold investment with other forms of investment, and finally — give some practical advice for Vietnamese people in California today.
Historical story
Gold is a rare precious metal. Its value lies in its beauty and resistance to erosion over time. With such characteristics, gold has become a favorite jewelry of Asian peoples, typically the two countries with the largest populations in the world, China and India. With such beauty and rarity, gold has been very valuable since ancient times and until now. Ancient kings often used gold to decorate their wealth and power.
Because of its rarity and value, the dynasties of ancient feudal countries chose gold as the currency of their countries to exchange goods. In China, in the 7th century during the Tang Dynasty, local credit institutions, which we later called banks, issued a paper money which they called bills at that time to replace gold, because gold was heavy and bulky, making it inconvenient to move large quantities from one place to another. To obtain such a check, merchants must deposit an amount of gold in the credit center equivalent to the value of the check.
With the development of today’s society, the world has entered capitalism; the monetary system is managed by national banks. In the early period of capitalism, the monetary system – paper money is guaranteed by a reserve of gold equivalent to the amount of paper money issued. This form is called Gold Standard. This is a monetary standard that naturally developed from Asia to Europe and spread to the whole planet.
After World War II, the warring countries including Japan, Germany, and Italy were defeated. They were bound by the Geneva Accords of 1945, not allowed to have armies and, more importantly, not allowed to produce weapons. The victorious forces were the allies led by Britain, France, the United States, and Russia, in which Britain and France were once the two largest colonial powers in the world, now exhausted of resources after the war. The world at that time was divided into a tripod: on one side was the world of capitalist countries, led by the United States; on the other side was the newly established world of communism, closed off from the capitalist world by what people called the “iron curtain”, led by the Soviet Union (Russia).
Although the United States was the last country to participate in World War II to help the victorious allied forces, it was the country that contributed the most human and material resources. After the world war, with a large population, extremely abundant natural resources, and many achievements after victory, it naturally became a “superpower”. America suddenly became a “nearly” exclusive center to produce weapons, high-end mechanical goods such as civil aircraft, ships, mechanical machinery, and many other high-end consumer goods. An unexpected consequence was that “the US dollar became the world’s monetary standard”. The US dollar almost replaced gold and became the currency accepted almost everywhere in the world. The whole world used the US dollar as a measure for their currency.
With such a strong position, in 1972, US President Richard Nixon announced the abolition of the Gold Standard. Since that year, the US no longer had to use its gold reserves to guarantee its money printing. After the US, the second largest economic center in the world, the European common market, also abandoned the Gold Standard. Today, there are not many countries that follow the Gold Standard system anymore, although each country continues to buy a significant amount of gold to store in their national banks.
In a capitalist economy, the price of material goods is governed by the law of supply and demand. The price of gold is no exception. Although today, gold is no longer a Gold Standard, but “traditionally,” many countries continue to hold a significant amount of gold reserves to support their paper money system. In industry, gold is also used in large quantities, although not as much as common metals such as iron, steel, copper, aluminum… In addition, gold is still used as jewelry in many countries around the world. With such needs and the scarcity of supply, gold still has an important place in investment.
Why do people buy gold?
Historical statistics in modern times show that, due to inflation and many other factors, the currency of any country, including the strongest currency today, the US dollar, also gradually loses value over time. Remember, with the same 100-dollar bill, 10 years ago, you could eat more than 10 bowls of pho and a glass of iced milk coffee, this year (2025) you can only buy 5 same portions.
But gold is different. With the same gold bar, if yesterday, you could buy 100 portions, today it is the same, even more.
So, if you do not have any attractive investment options, then compared to keeping dollars in your pocket, I would think, using money to buy gold is probably better. Because as mentioned, gold, history has proven, still retains its purchasing power over time, meaning that no matter how much the local currency falls in value, with the same amount of gold, you can buy the same amount of goods, regardless of the time.
Gold prices over time
When the US abandoned the Gold Standard in 1972, the price of gold was around $50/ounce. In 2000, the price of gold was $400/ounce. In 2012, a financial boom drove the price of gold up to nearly $2,000/ounce. Then, the price of gold stabilized at $1,200/ounce in 2015. The 2016 upheaval – Brexit, when Britain announced its withdrawal from the European single market – pushed the price of gold up to more than $1,300/ounce.
And so, the price of gold quietly climbed over the years. In 2020, the price of gold rose back to the high of $2,000/ounce and continued to climb each year. In early 2025, the price of gold reached $3,300/ounce. And in just 10 months of this year, it reached $4,400/ounce. So, at that time, the price of gold was: $4400 x 1.2 = $5,280/tael. This is currently the highest level in history.
What happened that caused the price of gold to increase so dramatically? According to economic experts, this event includes the following reasons:
- Global instability: Geopolitical tensions in the Middle East, US-China competition, and fears of a global recession caused investors to seek shelter.
- The USD weakened due to social support measures during the Covid pandemic (2020-2021): When the currency lost value, people returned to their inherent nature of buying gold. With extremely large demand happening all over the world, gold became more expensive.
- Central banks bought in: Countries like China, India, and Russia increased their gold purchases for reserves, causing the demand for gold to increase even more.
How to buy gold?
Today, investing in gold in the US is easier. In addition to buying and selling at jewelry stores, you can invest in the following ways:
- Buy gold bars by ounce online.
- Invest in gold through ETFs/investment funds (such as SPDR Gold Shares – GLD),
- Invest indirectly through stocks of gold mining companies (such as Newmont, Barrick Gold…).
Each method has its advantages and disadvantages, depending on your goals and risk tolerance.
When to buy it?
Buy when gold goes up or when it goes down. Who can predict when gold will go up or down, no need to go to work anymore?
In investing, there is a principle called dollar cost averaging. This principle advises you to buy regularly, for example once a week with the same quantity, regardless of whether it is high or low price to get the average price.
Comparing Gold to Other Investments in the US
| INVESTMENT TYPE | AVERAGE RETURN | RISK | LIQUIDITY | NOTES |
| Stocks (S&P 500) | 7-10%/year | High | High | Suitable for long-term investment |
| Treasury bonds (T-bonds) | 3-5%/year | Low | Very high | Safe, but low yield |
| Real estate | 4-8%/year | Medium | Low | Stable returns, but large capital |
| Gold / Gold ET | 0-6%/year | Medium | High | Asset protection, inflation prevention |
| Cryptocurrency (Bitcoin, etc.) | Unstable | Very high | High | High Volatility, high risk |
Looking at the table above, gold is not a form of quick profit, but a tool to preserve value and diversify the investment portfolio.
How to invest in gold correctly – Advice for Vietnamese in California
Determine the role of gold in your portfolio
See gold as “protective armor” rather than “profit-making machine.”
American financial advisors often advise gold should only account for a part of your investment portfolio.
Combine gold investment with other forms of investment
Real estate in California has proven over the past 100 years to be a solid form of investment. Statistics show that the price of a house located in a prime area, where there are many jobs, good schools, and ideal tourist attractions, often doubles every 10 years. We call this investment “slowly but surely.”
A balanced portfolio for Vietnamese in the US could be:
- 50% real estate.
- 30% stocks/index funds, bonds, or fixed income funds,
- 20% gold or gold funds.
This way you have both growth potential and a “safety shield.”
Be disciplined, don’t follow the crowd
We Vietnamese have a “follow the crowd” mentality, but investing in gold requires discipline.
Don’t buy because you see news of “gold breaking the peak” but consider the long-term goal: gold only makes sense if you hold it for at least 3-5 years.
Be careful with forms of “online gold investment” or promises of high profits
In the US, there have been many scams targeting Vietnamese people, promising “gold investment with a profit of 20%/month” – but in fact it is a Ponzi scheme. You should only trade through exchanges or funds supervised by the US Securities and Exchange Commission (SEC) or FINRA.
Conclusion: “Keep gold safe” – but know how to keep it
Vietnamese people in California have a tradition of appreciating gold – from wedding rings, necklaces to gold bars kept in safes. But in the US financial environment, you have many more modern and safe options.
Gold is still a symbol of sustainability — but smart investing is not about how much gold you hold, but how you allocate your assets (diversification) appropriately.
If you live in the US and earn in USD, take advantage of the transparent financial system, diversify your portfolio, and see gold as your “silent guardian” — not your “investment star.”
