Gold is considered the best hedge, with prices soaring during economic instability. This year, the pandemic has pushed gold prices higher. However, gold investment is not just about fleeting trends; with 45 years of experience, Shih Wun-Hsin has built his wealth through gold investments.

He admits that greater fluctuations in gold prices increase the likelihood of profits. During the 2008 financial crisis, when gold dropped to $700–800 per ounce, he boldly traded gold futures and earned a 30% profit. This year is no exception; his trading is more frequent yet cautious: 'The developments of the pandemic are full of uncertainty. I close positions with a profit of $30 to $40, trading between $1552 and $2050, with an average return rate of 40%.'

In early March, when gold was between $1500 and $1600, he paid special attention to the seasonal line, but before deciding to go long or short, he needed to reference the previous week's volatility index (VIX). At the end of February, when the VIX jumped from 17 to 40, he judged that the market would seek gold as a hedge, leading him to go long on gold futures. While holding gold futures, he employs a phased approach to reduce risk, monitoring the daily changes in the VIX to decide whether to add positions.

For March’s example, he positioned himself when gold was around $1552. Observing a daily increase in the VIX, he established a position over four continuous days until he reached his set volume and then refrained from further increasing it. The VIX, in March, surged to a high of 82, then slid back down to 25, showcasing extreme volatility. To determine trends, he also observes U.S. non-farm employment data and the holdings of gold ETFs. He notes that the non-farm employment numbers decreased drastically, reducing by 700,000 in March and plummeting by 20.5 million in April, as funds flowed into gold ETFs due to various countries' monetary easing policies, thereby increasing gold ETF holdings.

He states that the past rankings of gold ETF holdings were usually around 14th or 15th globally, but this year saw a remarkable rise, even surpassing Germany's holdings in August to become second only to the U.S. Currently, he maintains a bullish outlook on gold: 'Even with the VIX dropping to 25, it is still 10 points higher than the average in previous years. Additionally, the non-farm employment data remains weak, and gold ETF holdings continue to grow—factors that are supportive of gold prices.'