I cleared all my gold at 5200! The short-term support for gold may go down to 4600. The silver bubble will eventually burst, so stop dreaming about returning to 120.
The higher the bull market for precious metals rises, the more cautious I become. I keep asking myself some questions while also using AI to search for information to corroborate my thoughts.
The first question is whether there is still new capital stepping in at such a high market value for precious metals, and who exactly is buying.
When gold was at 3000, this answer wasn't so complicated; after due diligence, the main driving force was still the central banks of various countries. With long-term funds in the mix, there was no need to worry, so I decisively copied the homework for allocation.
When gold reached 4400, some changes began to occur. Various moms and dads, along with short video platforms, started promoting narratives that gold would continue to rise. Clearly, it was starting to overheat. That was when I sold my first batch of gold.
At 4800, everyone was still very excited, and retail investors in the crypto space began to be affected, while on the other hand, it was reported that family offices across various regions started increasing their allocations. A significant portion of this was new money from the crypto space, which is why the divergence between BTC and gold is so severe, with many newbies in crypto selling BTC to buy gold. This batch of money can also act as a driving force for prices because retail money in gold is still too small. However, silver is different; most of the silver should be from retail, which partly explains the significant drop in silver this time.
When gold hit 5200, I couldn't hold back anymore. The 5000 mark is the prediction by major international banks for the entire year of 2026, and it turned out to have risen so quickly in January. Then, following that, the Shanghai Futures Exchange issued restrictive policies, and the CME also raised margins, causing gold to plummet from 5600 back to 5200. At that moment, I knew it was time to run!
At this point, those still trying to catch the bottom are probably quite deep into it. Do ordinary people need so much gold and silver? The US dollar hasn't gone bankrupt yet, and the RMB hasn't gone bankrupt yet either. Is your home filled with robots, all AI? Can you not live without memory, without robots, without AI? Wake up! The narrative around gold and silver is very successful, but it can't withstand so many people trying to catch the bottom in the short term. When the last batch of retail investors enters the market, it will be time to harvest. At this time, ask yourself more often if there are people even more foolish than you waiting to take over.
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