Buying 100 grams a year for twenty years: This elderly man's "simple method" reveals the ultimate wisdom of investing

Ask AI · Grandpa’s 20-year gold buying habit: How to use time to overcome market fluctuations?

Recently, gold prices have been on a roller coaster, first soaring past highs with great momentum, then unexpectedly turning downward. On social media, some share screenshots of losses, lamenting “standing at the top is so cold,” while others are busy asking whether to buy the dip or cut losses. Amid this anxiety and chaos, a Beijing grandpa has become popular.

His popularity isn’t due to any technical skill—he simply stood among the bustling crowd at Beijing Caibai’s flagship store and calmly said a few words to the camera. His demeanor was like chatting about today’s weather.

The grandpa told reporters he has an unwavering habit: Buy 100 grams of gold for himself every birthday. This has been his routine for twenty years. He doesn’t trade short-term, holding long-term after purchase, only selling in parts when prices are right. So far, he has sold a total of 1,500 grams, earning substantial gains. When asked about the recent sharp drop in gold prices, he remained composed: “Isn’t that normal? No particular feeling.”

This calmness, forged through multiple cycles of ups and downs, makes many young investors who chase gains and panic sell feel inferior. Comments in the online community echo: “Grandpa is still grandpa.”

But let’s seriously consider: what exactly did this grandpa do right? Is his 20-year gold buying journey just good luck?

A closer look reveals he only did three things: Use dollar-cost averaging to solve timing difficulties, hold over long cycles to smooth volatility, and choose gold to preserve asset value. This seemingly simple approach uncovers a fundamental truth in investing—wealth growth isn’t about who’s smarter, but about who understands how to use time to create space, discipline to resist fluctuations, and choices to protect the bottom line.

First, his buying method. He essentially used “dollar-cost averaging” to solve the ultimate challenge in investing—timing the market. Whether Wall Street pros or market vendors, everyone hopes to buy at the lowest point and sell at the highest, but countless facts prove that accurately predicting short-term market swings is nearly impossible.

His approach is clever: he extends his time horizon, buying only once a year. This is a vivid practice of the “regular investment” concept. Gold prices fluctuate, economic cycles rise and fall, but through this unwavering discipline, when prices are low, he buys at a lower cost; when prices are high, he doesn’t chase the top—looking back after twenty years, his average purchase price is relatively smooth. This method won’t make you rich overnight, but it helps you avoid impulsive decisions driven by greed or fear—buying or selling at the wrong times—and builds a stable core for wealth accumulation.

Second, the holding period. Twenty years of patience qualifies him as a “friend of time.” He’s not betting on the next minute or month’s gold price, but on a full economic cycle. Over these two decades, we’ve seen the burst of the internet bubble, the global financial crisis, regional conflicts, and more.

Many once-hot assets have vanished in storms; many once-glamorous companies have become history. Yet gold remains, quietly preserving its value. The core appeal of long-term investing is that it uses the weight of time to smooth out short-term violent waves, allowing you to survive bull and bear markets and harvest the most certain dividends from long-term global economic growth. These dividends often aren’t explosive but require endurance.

All this depends on him choosing “gold,” a robust, high-quality asset. What is a high-quality asset? It’s something that withstands the test of time, whose intrinsic value doesn’t evaporate with passing years, and can even protect itself amid currency floods.

Gold’s scarcity is natural; it doesn’t depend on any company’s management nor is it directly affected by any country’s credit. When fiat currency depreciates due to inflation, gold often steps up as an effective hedge. Choosing high-quality assets means selecting a long runway and a resilient “snowball.” If the grandpa had bought shares of a star company, it might have gone bankrupt; if he bought a trendy collectible, it might have become outdated. Gold’s “quality” lies precisely in its “unchanging” and “permanent” nature.

Connecting these three points, the grandpa is essentially adopting a mindset akin to ancient farming—facing modern financial markets’ turbulence with a rural approach: plant seeds (buy in installments) annually, patiently wait for crops to grow through seasons (long-term holding), and choose the most resilient seeds (top-quality assets). His “harvest” isn’t from frequent reaping but from patient accumulation and trust in the asset’s fundamental strength.

When asked about his thoughts on the recent gold price plunge, his reply—“Isn’t that normal?”—teaches all market anxious participants: volatility is inherent to markets; ups and downs are their true face. Those lost in chasing gains and panic selling may lack not market judgment but reverence for market laws and mastery over their own emotions.

Grandpa’s success is hard to replicate simply because his twenty-year persistence involves strong discipline and resolve. But the underlying philosophy is worth pondering: don’t try to beat the market; instead, use dollar-cost averaging to integrate into it. Don’t underestimate the power of time—give excellent assets patience to grow. And always choose core, scarce assets that can withstand the test of time.

Wealth growth doesn’t always require complex tricks; it’s more like a long-term practice—testing your understanding of market laws and inner calm.

Author’s note: Personal views only, for reference.