Core Viewpoint - The global precious metals market is experiencing a significant bull market driven by multiple factors, with prices reaching historical highs by Q4 2025, presenting both opportunities and challenges for market participants [1][3]. Group 1: Driving Logic - The bull market in precious metals is a result of three main factors: the restructuring of the global monetary credit system, historical mismatches in supply and demand, and advancements in trading technology [2][3]. - The first factor involves the interplay between the reconfiguration of the global monetary system and the rise of protectionism, leading to a depreciation of currency purchasing power relative to physical assets, with gold being revalued as a key asset against inflation and geopolitical risks [3]. - The second factor highlights the shift of silver from a precious metal to a strategic key mineral, driven by increased demand from the photovoltaic industry and technological advancements that raise silver consumption in solar cells [3]. - The third factor emphasizes the diversification of market participants and the complexity of trading instruments, which allows for global resonance in response to market changes [3]. Group 2: Behavioral Finance Perspective - The acceleration in precious metal prices can be understood through behavioral finance, where market mechanisms react to paradigm shifts, leading to rapid price corrections [4][5]. - The "anchoring effect" becomes ineffective as prices break through historical highs, allowing for a new price discovery phase characterized by high premiums [5]. - The reversal of the "disposition effect" occurs as traders, fearing missing out, hold onto positions rather than selling early, leading to forced short-covering that drives prices higher [5][6]. - The "representativeness bias" accelerates market consensus formation, as traders begin to view rapid price increases as the new norm, leading to a swift transition from skepticism to certainty [6]. Group 3: Rational Response Strategies - Market participants are advised to avoid trying to predict market tops and instead focus on maintaining a trend-following discipline while implementing dynamic profit-taking strategies [7][9]. - Dynamic profit-taking is essential to protect gains while allowing for continued participation in upward trends, with strategies involving trailing stop-loss orders [9]. - Utilizing non-linear tools, such as buying out-of-the-money put options, can help manage risk while preserving core positions, aligning with the investment philosophy of cutting losses and letting profits run [9]. Conclusion - The precious metals market in 2025 reflects long-term changes in monetary credit and industrial structure, requiring traders to understand macro narratives and respect market mechanisms while adhering to disciplined risk management practices [11].