Core Viewpoint - The precious metals market experienced extreme volatility at the end of 2025, with significant price drops in gold and silver, leading to a surge in consumer interest despite underlying risks [1][3]. Group 1: Market Volatility - On December 30, 2025, spot gold fell by 4.42%, dropping below $4,330, while domestic gold jewelry prices fell below 1,400 yuan per gram, with some brands like Chow Sang Sang dropping to 1,353 yuan per gram, a multi-month low [1]. - Silver prices saw a dramatic decline from a high of $83 to $75, with a volatility exceeding 10%, followed by a near 8% rebound the next day [1]. Group 2: Causes of Price Fluctuations - The Chicago Mercantile Exchange (CME) raised margin requirements twice within a week, causing silver futures margins to increase by 30%, which triggered mass liquidations among high-leverage speculators [3]. - The liquidity dried up before the New Year holiday, prompting institutions to take profits, leading to a sudden market downturn [3]. Group 3: Consumer Behavior - Despite the price collapse, consumer interest surged, with gold stores experiencing high foot traffic as prices for items like a 36-gram gold bracelet dropped by 1,500 yuan overnight [3]. - Some consumers expressed regret for not purchasing more gold when prices were lower, while others opted to wait for potential further declines before buying [3]. Group 4: Market Sentiment and Predictions - The bullish camp believes in three main pillars supporting gold prices: potential interest rate cuts by the Federal Reserve in 2026, continuous gold purchases by global central banks for 13 months, and ongoing geopolitical tensions in the Middle East [5]. - Conversely, the bearish camp warns that gold prices are currently 14% above the 200-day moving average, and a recovery in the economy or a shift in policy could lead to a price correction of up to 20% [5]. Group 5: Investment Strategies - Experts recommend that ordinary investors limit physical gold investments to no more than 10% of liquid assets, favoring bank gold bars with a low premium of only 3% [6]. - For silver, which has a volatility rate more than twice that of gold, it is advised to keep positions under 3% and avoid leverage [6]. - A phased profit-taking strategy using a "50/30/20" method with a stop-loss line of 5%-8% is suggested to mitigate emotional trading decisions [6].

Core Insights - The article discusses the increasing discussions on social platforms regarding "fund recovery" and "finally breaking even," particularly among investors who entered the market at high points [1][4]. - Many investors are experiencing significant profits after a prolonged period of losses, leading to varied responses regarding their investment strategies [3][10]. Market Behavior - The phenomenon of "capital preservation" is prevalent, with many investors opting to redeem their funds upon breaking even after enduring long periods of losses [4][10]. - Psychological factors such as "loss aversion" and "anchoring effect" influence investors' decisions to redeem funds once they recover their initial investments [5][7]. Investment Strategies - Three strategies are proposed for fund profit-taking: - **Pyramid Averaging Method**: Investors can consider increasing their positions as prices decline, which requires sufficient capital and accurate market timing [11]. - **Incremental Profit-Taking Method**: This involves redeeming a portion of holdings at set profit thresholds, allowing for both profit locking and continued market participation [12]. - **Dynamic Portfolio Adjustment Method**: More experienced investors may view recovery as an opportunity to optimize their portfolios by reallocating funds between high-volatility and low-volatility investments [13][14]. Conclusion - The article emphasizes that while various strategies can be employed, the key to successful investing lies in continuous asset allocation optimization and emotional management, marking recovery as a new starting point rather than an endpoint [16].