Now consider buying gold and silver, there are several types of risks that need to be kept in mind.
First is the macro environment.
Once the Federal Reserve turns to a more hawkish stance,
real interest rates rising often weakens the attractiveness of precious metals.
Additionally, new assets like cryptocurrencies are also diverting traditional safe-haven funds.
There are more choices in the market than before.
The risk of volatility is not small either.
Gold and silver prices are greatly influenced by the US dollar, interest rates, and geopolitical events.
In the short term, drastic fluctuations can easily occur.
Especially silver, according to statistics,
over 40% of last year's increase was driven by speculative funds.
Emotions come and go quickly.
Once the geopolitical situation cools down,
or exchanges raise trading margins,
some hot money may quickly withdraw, even triggering a stampede-like decline.
So right now, this type of asset needs to be cautious:
Although they still carry the name of "safe haven,"
the actual volatility is more like speculative targets.
If you are buying for stable value preservation, you need to be prepared to endure fluctuations.
Experienced veterans often control their positions now,
and pay more attention to changes in liquidity.
Once funds recede, those who move slowly are likely to be left at high points.
First is the macro environment.
Once the Federal Reserve turns to a more hawkish stance,
real interest rates rising often weakens the attractiveness of precious metals.
Additionally, new assets like cryptocurrencies are also diverting traditional safe-haven funds.
There are more choices in the market than before.
The risk of volatility is not small either.
Gold and silver prices are greatly influenced by the US dollar, interest rates, and geopolitical events.
In the short term, drastic fluctuations can easily occur.
Especially silver, according to statistics,
over 40% of last year's increase was driven by speculative funds.
Emotions come and go quickly.
Once the geopolitical situation cools down,
or exchanges raise trading margins,
some hot money may quickly withdraw, even triggering a stampede-like decline.
So right now, this type of asset needs to be cautious:
Although they still carry the name of "safe haven,"
the actual volatility is more like speculative targets.
If you are buying for stable value preservation, you need to be prepared to endure fluctuations.
Experienced veterans often control their positions now,
and pay more attention to changes in liquidity.
Once funds recede, those who move slowly are likely to be left at high points.