This week, the gold market has experienced extreme volatility. After reaching its all-time high of $3,509.9 per ounce on Tuesday, the international gold price has dropped to around $3,300.

However, Ryan McIntyre, Executive Partner at fund company sprott, stated that investors should take advantage of this pullback to gradually build a gold position accounting for 10% of their investment portfolio. Compared to the overvalued stock market, gold still has significant upside potential in the long term.

He pointed out that his fear of the U.S. stock market far outweighs his concern about gold. He expects U.S. stocks to continue struggling as inflation remains stubbornly high, forcing the Federal Reserve to maintain a neutral policy. Sooner or later, companies will adjust their future earnings expectations to reflect the impact of high interest rates.

He emphasized that over the next decade, gold's returns may not underperform those of U.S. stocks, and its risk profile could be much better.

McIntyre noted that the problems brewing in global financial markets have now spread to the sovereign level, which will support gold in 2025.

He believes that the issues faced by the previous generation were largely confined to corporate problems. Still, the current generation must deal with sovereign issues, particularly those related to the U.S. Given that the U.S. is the world's largest economy, the risks are far greater than before, and the only solution to such risks is physical gold.

Previously, extreme risk aversion swept the market after U.S. President Trump threatened to impose high tariffs globally and sought to replace Fed Chair Powell, making gold the ultimate safe haven. Although Trump later softened his stance, in McIntyre's view, the damage has already been done.

He stressed that the U.S. dollar will not lose its reserve currency status overnight, but its usage is declining. He believes countries will either hold more of their own currencies or turn to more independent alternatives, such as gold.

In his view, the 2011 gold rally, which pushed prices to a then-record high of $1,900 per ounce, sparked a mining boom and flooded consumers with gold advertisements. But now, public interest in gold has not reached that level of frenzy.

This also means gold prices have not yet peaked. McIntyre said the market will only see a peak when people are utterly convinced that gold can do no wrong.