For the longest time, gold and silver were seen as “boring” assets – the kind of thing your grandfather might keep in a safe but rarely discussed at a trendy coffee shop.
That has changed.
Since 2024, we’ve witnessed a historic run where gold prices surged from US$2,000 to over US$5,000 per ounce.
This rally has triggered a massive shift in behavior, with precious metals becoming the top starting point for first-time investors.
To help make sense of these trends, our co-founder, Chin Hui Leong, joined Channel News Asia (CNA) on 19 February 2026 to share his perspective on whether this “gold rush” is a sustainable strategy for the long run.
The Great Returns Debate: Pricing vs. Productivity
In his discussion on CNA, Chin highlighted that when you buy gold, you are essentially making a bet on a pricing game.
Unlike stocks, gold is not a productive asset; it doesn’t generate earnings, pay dividends, or innovate.
Its price rises only if someone else is willing to pay more for it than you did.
This is why gold prices can decline sharply for no apparent reason – there is no “valuation” floor based on business growth.
In contrast, the stock market is a valuation game.
When you buy shares in a company, you are owning a piece of a business that works to grow its profits.
The data reflects this fundamental difference: while gold has delivered a long-term real return of approximately 0.64% per year, equities – specifically the US stock market – have significantly outperformed with an annual real return of approximately 6.9%.
While gold has outperformed recently, Chin notes this is a recent phenomenon.
For a new investor, having the right expectation is key.
If you are looking for long-term wealth building, the stock market remains the heavy lifter.
Generational Shifts: Getting Rich vs. Staying Rich
During the interview, the conversation turned to the differing mindsets of younger and older investors.
While it’s tempting to paint all young investors as risk-takers, Chin offered a more nuanced view.
He noted that the primary difference often comes down to the goal: getting rich versus staying rich.
Younger investors, who are in the wealth-accumulation phase of their lives, are often more open-minded toward new ideas and higher-volatility assets as they try to build their nest eggs.
On the other hand, older investors – especially after the strong market rallies of the last two years – may be more focused on capital preservation.
For them, “boring but safe” assets like bonds or dividend-paying blue chips may be more attractive to protect the wealth they have already built.
Ultimately, Chin emphasized that your investments are simply vehicles to get you to your destination, and those needs naturally change over time.
Beyond the Bullion: The Revival of the SGX
Interestingly, while some chase gold, Chin observes that more seasoned investors and local market watchers are looking back at home.
The Singapore market has seen a broad-based rally, moving beyond just the “Big Three” banks to include telcos and industrials.
This has been supported by the government’s Equity Market Development Programme (EQDP), which was recently expanded in Budget 2026 from S$5 billion to S$6.5 billion.
Chin points out that this initiative has played an important part in shining a light on high-quality, lesser-known local companies, helping to keep the market healthy and vibrant.
Get Smart: Focus on Time, Not Timing
As Chin shared on CNA, the secret to success isn’t finding the next “perfect” asset – it’s knowing your goal.
Regardless of your age, remember that your time in the market is more important than timing the market.
Chin referenced DBS Research showing that if you invested in the Straits Times Index (SGX: ^STI) between 2000 and 2011 and held for 15 years, your rolling returns would have fallen between 6% and 13.3%.
This is a solid outcome that required no guesswork.
Use gold as a diversifier if you must, but don’t let the glitter blind you to the compounding power of productive businesses.
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[This article is based on insights shared in the CNA interview, “Two-thirds of new-to-bank OCBC investors last year chose gold or silver”, published on 19 February 2026.]
