📖《The Power of Gold: The History of an Obsession》 — The power of gold

The editor takes you to explore mankind's thousands of years of fascination and obsession with gold

🌍 Preface: Why should you watch "The Power of Gold"?

Gold is a familiar commodity to Hong Kong residents. Whether buying gold jewelry for a wedding, selling gold bars at a bank, or investing in gold ETFs, everyone considers it a "magic store of value." But have you ever wondered why humans are so obsessed with gold? Why, for thousands of years, has gold become central to finance, politics, religion, and warfare?

Peter L. Bernstein's book, The Power of Gold , is a massive tome devoted to the history, financial status, and cultural significance of gold. After reading it, I felt like I was watching a historical documentary spanning thousands of years, featuring emperors, generals, bankers, and adventurers, all of whom were swept up in the turmoil of gold.

📘 Book Background

• Author : Peter L. Bernstein, a master of financial history
• Publication date : 2000
• Theme : Gold History, Financial System, Cultural Symbolism
• Features : This story tells how gold has influenced human civilization, not just as a "precious metal" but also as a "belief"

Bernstein described gold as a "force" that could build empires or destroy nations.

🧠 Theme 1: The Mythology and Religion of Gold

In ancient civilizations, gold was not only wealth, but also a sacred symbol.

• The ancient Egyptians buried gold with the dead, believing it could be taken to the afterlife.
• Greek mythology includes legends such as the "Golden Fleece" and the "Alchemy of the Midas Touch."
• Medieval alchemists sought to "transmute stone into gold" and believed that gold was a perfect substance.

👉 The editor feels that the reason Hong Kong people buy enough gold jewellery for their weddings is actually based on a belief that represents "stability" and "eternity".

📊 Theme 2: Gold and Power

Gold has long been linked to political power.

• The Spanish colonial empire grew rich thanks to South American gold, but also declined due to inflation and waste.
• Britain established the "gold standard", making London the world's financial center in the 19th century.
• After World War II, the United States used the Bretton Woods system to peg the dollar to gold to consolidate the dollar's hegemony.

👉 Editor's perspective: Gold is like the "king" in the international chess game. Whoever controls gold controls the rules of the game.

💰 Theme 3: Gold as Currency

Gold has always been considered "natural money":

• For thousands of years, gold has been almost universally accepted because it is scarce, durable, and easily divisible.
• The "gold standard" was the core of the modern financial system until US President Nixon announced the abolition of the gold standard in 1971, and the world entered the era of "fiat currency".
• Although the gold standard has disappeared, gold remains a reserve asset of the central bank.

👉 My understanding is that Hong Kong people buy gold bars as a form of "private gold standard" to combat inflation and financial crises.

⚔️ Theme 4: Gold and War

The book says that many wars are related to gold:

• During the Napoleonic Wars, Britain relied on gold to fund its allies.
• During World War II, Nazi Germany plundered Europe's gold to fuel its war machine.
• The United States had the largest gold reserves in the world after World War II, allowing the US dollar to replace the British pound as the world's reserve currency.

👉 Editor's perspective: It turns out that gold isn't just for its glittering beauty; it's also been a "fuel of war" throughout history.

📈 Theme 5: Gold in Modern Finance

• The emergence of gold ETFs allows ordinary investors to buy gold without having to store real money.
• Gold prices are often related to market panic: when the stock market falls, geopolitical tensions rise, and inflation increases, gold prices will rise.
• But gold itself has no interest or dividends and is purely a "store of value."

👉 Editor's Tip: Hong Kong people like to say "gold prices won't fall too much", but in fact, gold also has cyclical fluctuations and is not a "guaranteed profit".

🏛️ Theme 6: Gold and Humanity

In his book, Bernstein argues that humanity's fascination with gold stems not only from its financial practicality but also from its psychological nature. Gold represents security, power, eternity, and even obsession .

👉 My feeling is that Hong Kong people often buy gold jewelry not for investment, but for peace of mind. Gold represents both wealth and emotional sustenance.

🌟 Editor's summary

"The Power of Gold" is not an investment textbook, but a long story that combines history, culture and finance.

• If you want to know why gold has become the "world's universal currency" ⚖️
• If you want to know how wars, empires, and financial systems are linked to gold⚔️
• If you want to understand mankind's thousands of years of obsession with gold💎

👉 The editor summarizes in one sentence: Gold is not just a metal, it is a mirror that reflects humanity's desire for power, wealth and security.

📑《The Power of Gold》Hong Kong App Quick Guide

I'll help you put the historical wisdom of gold into practical use in Hong Kong investment and life scenarios. You won't just read the story, you'll also learn how to apply it! 💎

💰 How Hong Kong people interact with gold

• Buying gold jewelry for a wedding : represents stability, longevity, and traditional values. 👰🤵
• Bank gold bars/coins : Considered as a store of value and an anti-inflation asset. 🏦
• Gold ETF/Futures : Retail investors can invest in the gold market with small amounts without having to worry about storage issues. 📊
• Jewelry brands (gold shops) : Gold can be seen everywhere on the streets of Hong Kong, and gold is integrated into daily culture.

📊 How to apply the wisdom in the book

1. Gold = Crisis Safe Haven

• The book says that gold becomes a life-saving straw in times of war and financial turmoil.
• Application in Hong Kong : When the stock market plummets or geopolitical tensions arise, Hong Kong people will buy gold to preserve their value.
  👉 Editor's Tip: Gold is a hedging tool, not a tool for "quick cash speculation."

2. The Gold Standard: Trust in Currency

• The book analyzes how the gold standard system supports the imperial credit.
• Application in Hong Kong : The Hong Kong dollar is pegged to the US dollar (the linked exchange rate system), which is essentially a "trust mechanism".
  👉 Editor's Tip: Buying gold is actually a form of self-insurance against skepticism about "fiat currency."

3. Gold’s cyclical fluctuations

• The book points out that gold does not always appreciate in value; the rise and fall of empires also affect gold prices.
• Application in Hong Kong : Many Hong Kong people believe that “gold prices will never fall sharply”, but in fact, gold prices have long-term downturns.
  👉 Editor's tip: Buy gold with a long-term mindset and don't treat it like a short-term stock trade.

4. Gold and Humanity

• The book emphasizes that gold represents a sense of security and obsession.
• Hong Kong application : Elders’ preference for giving gold jewellery to their descendants is actually a form of cultural inheritance.
  👉 Editor's Tip: Buying gold jewellery may not be the best investment, but it does offer the most emotional rewards.

🏠 Hong Kong Property Market vs Gold

• Real estate market: high returns but high risks, low liquidity.
• Gold: No rental returns, but it maintains value during crises and has high liquidity.
  👉 Editor's perspective: Hong Kong people buy property + gold, which can complement each other: the property market strives for appreciation, while gold maintains the bottom line.

🌟 Editor's summary

The Power of Gold can be understood in the context of Hong Kong:

• Investment level : Gold-related asset portfolio is a safe-haven tool that helps you diversify risks.
• Cultural level : Gold is an important symbol of traditional marriage and family heritage in Hong Kong.
• Psychological level : Buying gold is not just about financial management, but also about buying peace of mind.

👉 Editor's note: Gold in Hong Kong is both an investment and a cultural symbol; it is both wealth and a tranquilizer.