In 1979-1980, the level of market madness was quite impressive. Gold skyrocketed from $200 to $850 a year, and silver went even further, from $6 to $50. But who would have thought that, just two months after the peak, the price of gold had been cut in its own right, and the silver had fallen by two thirds, and that for the next two decades, those two precious metals had been completely frozen in ice, with no future. The period from 2010 to 2011 has come to an alarming conclusion. Gold went through $1,000, went up to $1921, and silver went up $50 again. But the booming bubble will eventually break, with gold retreating by 45 per cent and silver falling by up to 70 per cent, followed by a long fall and crossover and trapping countless highs。
These two surges were not without trace; they were either the result of the oil crisis, which led to hyperinflation, or contributed to the surge in market liquidity following the financial crisis. It is almost the unbreakable truth of the precious metal market that the more it rises and falls. Now that the new cycle has begun, the context of the story has changed. The global central bank has increased its gold, the tide of de-dollarization has surged, and the silver bank has increased its support for industrial needs. There's a lot of people who think this is different. But once in a while, the alarm is sounded, and the boom is bound to be followed by a retreat, often in a hurry and depth. The average withdrawal of gold is more than 30 per cent, and silver is more than 50 per cent. Is that not enough to alert
The current state of affairs is out of historical order and no one can predict exactly where the top is. There is no doubt, however, that the sharper the increase, the stronger the adjustment in the future. On the road to investment, blindly chasing highs is like dancing with a knife. Only by fearing the market and remembering history can the principal be kept in the throttle. Instead of being overwhelmed by short-term surges, let's take a cool look at the trend, after all, “the tide retreats to know who's swimming naked”, and a robust layout can go far。
