Recently, the precious metals market has been quite volatile, with gold and silver experiencing sharp drops, leading many to ask: Is the upward trend about to reverse?

Actually, from a fundamental perspective, the logic behind precious metals still holds. The problem lies in the overly aggressive speculative capital during this period. Short-term capital rushing in easily creates a risk of踩踏 (stampede or liquidation risk). This situation is not beneficial for true long-term holders. Precious metals are the kind of investment that requires time to accumulate, rather than a quick in-and-out speculative tool.

Many people fall into a misconception — wanting to trade every day, eager to have opportunities daily. But the truth of the market is that not every moment is suitable for trading. For example, today is another withdrawal day, with large funds observing and resting. Retail investors rushing to buy at this time often get caught in a big downturn. Time cost is something ordinary investors really cannot afford.

I have always believed that investing and speculation are two different things. The money earned from speculation, in a certain sense, ultimately has to be returned to the market in other ways. Instead of frequent trading, it’s better to choose a truly patient investment approach — it may not be as刺激 (exciting), but it’s easier to secure profits and take them off the table.