Woke up early to watch the market, spot silver opened with a direct flood of 8%, and gold also fell below $4,590. This kind of decline is indeed scary. But more surreal than the shrinking account is that when you want to take advantage of the fall to buy physical goods, you find that you can't buy anything at all.
The current market is extremely fragmented. On one side, the futures market is violently liquidating due to excessive leverage, and the Shanghai Gold Exchange has been forced to raise margins to stabilize volatility, with serious long liquidation; on the other side, the physical market is in extreme shortage, with small gold bars from Hangzhou and Shuibei completely out of stock. Merchants would rather pay more to collect materials than sell at low prices. This divergence of 'market crash and physical premium' indicates that smart money is not panicking at all, but rather taking advantage of this pullback to buy in. UBS has raised its target price to $6,200, with the core logic being that the large cycle of currency depreciation remains unchanged. This wave of decline is killing greedy speculators and washing out weak floating positions.
Are you ready to follow the panic selling or are you already queuing at the bank? Please report your physical purchase price for today in the comments.
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