Finally, the bubble in the gold and silver markets has burst. Just three days ago, I asserted that among speculative assets like Bitcoin, gold, and silver, silver had the most severe bubble, followed closely by gold, while Bitcoin's bubble was relatively the smallest.

As of January 30, 2026, with the White House nominating a new chairperson for the Federal Reserve, market sentiment plummeted. Looking back at the drawdowns from recent highs across various assets, the data is shocking: Bitcoin plunged about 35%, silver crashed about 30%, and gold also declined about 13%. This result seems to confirm my previous analysis and judgment.

As an investor who has allocated all positions to stock index funds, I always adhere to one principle: I resolutely avoid any assets that cannot generate cash flow, and the aforementioned products naturally fall within this category. In my view, they are purely speculative tools, and their price volatility sometimes even exceeds that of stock indices. However, from a long-term return perspective, the annualized returns of these assets often do not exceed 7%, which is significantly lower compared to the approximately 11% return of the S&P 500 index, and cannot be compared to the approximately 14% performance of the Nasdaq 100 index.

For example, according to historical data, gold prices peaked in 1980 and then began a long decline, only breaking the previous high again 28 years later in 2008. During this lengthy waiting period, holders not only faced a reduction in principal but also did not receive any interest or dividend income.