Yesterday, we were still shouting "Gold is going to 6000", and today the account is in panic with red——this round of epic crash in gold and silver is not a collapse, but a meticulously brewed "market clearing".
In just a few days, gold prices plummeted from 5600 USD, while silver evaporated nearly 20% in a day. On the surface, it seems that the sudden change in the candidate for the Federal Reserve Chair and the failure of interest rate cut expectations triggered panic, but what is truly deadly is the nearly crazy price increase of the previous month combined with the bubble created by dozens of times leverage. When the policy direction changed, profit-taking, program trading, and forced liquidations formed a "death spiral", causing the market to instantly lose speed.
What is even more concerning is that many people treat gold as a "sure profit asset", even borrowing money to leverage and chase high prices, while forgetting that its essence is an interest-free hedging tool, not a quick wealth-making vehicle. Especially silver, which has industrial properties accounting for half; once the economic outlook is under pressure, its decline far exceeds that of gold.
However, a crash does not mean a logical collapse. Central banks around the world are still quietly hoarding gold, the trend of de-dollarization has not changed, and geopolitical risks have not truly been resolved. This sudden drop is more like the market releasing the overheated emotions, squeezing out speculative excess and bringing prices back to fundamentals.
For ordinary people, rather than guessing where the bottom is, it is better to reflect: Are you buying gold to hedge against risk, or to gamble for quick wealth? Remember, true hedging is never about chasing high prices, but about being clear-headed.
$BTC
