Special Topic: Gold and Silver Experience a Crash of the Century - Has the Precious Metals Bull Market Ended?
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#Reasons for the Sharp Plunge in Gold and Silver# International gold prices plummeted rapidly. Watching a near-90-degree downward line suddenly appear on the screen, the real-time gold price dropped sharply in quick succession, breaking through the $5,400, $5,300, and $5,200 support levels one after another. Gold investor Xiao Lin panicked and was forced to urgently sell off part of his gold holdings. On the evening of January 29th, international gold and silver experienced a "night of major turbulence." The international gold price fell back below $5,200 per ounce, with spot gold dropping over 4%. The international silver price fell back below $11.00 per ounce, with spot silver declining over 6%. Tian Lihui, Dean of the Institute of Financial Development at Nankai University, pointed out that this "roller coaster" market movement is a classic fluctuation triggered by the combined effects of technical, capital, and sentiment factors. The core issue is that the market's short-term gains were excessively large, accumulating a massive volume of profitable positions and reaching an extreme "overbought" state. Essentially, this sharp decline is a concentrated release of the market's inherent fragility at a specific point in time, serving as a mandatory risk clearance following the previous irrational surge. Tian Lihui believes that for ordinary investors, the current key is not market timing, but establishing a correct investment paradigm. Ordinary investors should completely abandon the mindset of "buying the dip." For long-term allocation, it is essential to use the correct tools, stay away from leverage, and strictly control the proportion allocated. Adopting a dollar-cost averaging approach with the philosophy of "buying on dips, in batches, for the long term" to smooth out costs is the way to navigate high-volatility cycles and share in its long-term value.
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