2026-01-08 00:20:47

The precious metals market has recently exploded. Gold crashed suddenly, silver plummeted 7%, and the news is flooding in one after another—has the bull market really ended?

Don't rush to draw conclusions. The true culprit behind this sharp decline is actually Wall Street's "year-end clearance sale."

Every January, hundreds of billions of dollars tracking the Bloomberg BCOM index need to be mechanically rebalanced. The rule is simple: overperforming assets must be cut. Last year, precious metals performed too strongly, with silver soaring 148%, so now they are being sold off aggressively. This is not a fundamental deterioration, but a collective escape by passive funds.

Look at the real situation: central banks are still continuously buying gold, geopolitical tensions remain complex, and industrial demand (for PV, AI chips, etc.) has not diminished. These factors are still in play.

Silver might have been hit the hardest. Due to its smaller size and concentrated selling pressure, the market can easily create deep pits. But conversely, the tight supply of spot silver is also a real fact.

How to respond? The long-term logic remains intact; sharp declines are often "golden pits." After the passive selling pressure releases in the next 1-2 weeks, pay attention to whether key support levels can hold. Don't chase the highs or sell at lows; wait until the rhythm is clear before taking action. The market always likes to give gifts in panic—whether this is a trap or a pie remains to be seen.

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PhantomMiner

· 01-10 02:08

It's the same BCOM trick again, every January I have to go through the hassle. If you're really daring to bottom fish, wait until the support level, don't be scared out by the sell-off. The central bank is still buying, the fundamentals haven't worsened, so why panic?

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JustAnotherWallet

· 01-09 16:49

The year-end rebalancing, Wall Street has played out to death, really just mechanical dumping The central bank is still frantically sweeping gold, the fundamentals haven't really deteriorated Silver, with a smaller volume, is hit the hardest, but there's actually a chance The shortage of spot is real, this wave is the golden pit, let's wait and see People chasing gains and selling on dips should reflect on themselves, the market loves to give gifts in panic

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PessimisticOracle

· 01-09 12:33

Ugh, here we go again. I believe the central bank is buying gold, but is Wall Street really that mechanical? Silver is being beaten down so hard, it feels a bit too far-fetched... I'm tired of hearing about "gold dips," they say that every time it drops Physical shortage? Then why haven't I seen prices rebound? Wait, did a 148% gain really happen before? What are the odds this is a trap? Honestly want to know The long-term logic isn't broken, so I'll just sit and watch short-term for now If support doesn't hold, I'm cutting losses. Don't want to be stuck again

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RamenStacker

· 01-09 05:57

It's the same old trick again, mechanical rebalancing shifting the blame to retail investors, textbook case. I believe in the shortage of silver spot, but how many are really daring to bottom fish? The central bank buying gold is actually a long-term signal; don't be scared by short-term dips. Whether to jump into the gold pit or not depends on who can stay calm. This wave, with silver's small volume, is indeed easy to be hammered down. Let's wait and see. Bull market over? Not that simple, the fundamentals are still there. Forget it, continue to lie flat; anyway, I am in it for the long haul. Passive market shifting the blame has been used for so many years, yet some still fall for it, haha. Only consider action when the support level is broken; right now, nothing has happened. As long as the central bank is still stockpiling gold, there's no need to panic; that's a trump card.

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DAOTruant

· 01-08 00:50

Here comes the year-end clearance sale again. With this kind of passive consolidation, retail investors are bound to get hurt. Silver is the real victim; its small size makes it easier to be hammered, but the tight supply is indeed true. The central bank is still buying gold. The fundamentals haven't collapsed; it all depends on whether it can hold the support level. Is this wave a golden pit or a big pit? Let's see the trend later. Small-cap assets are just so hard to handle... Don't chase the highs or sell at lows; wait for the rhythm to emerge before acting. Last year, silver rose 148%, now forced to vomit blood—Wall Street's tricks are truly outrageous. A sharp decline = picking up bargains? Still, caution is necessary. The central bank has been buying gold; this signal is quite strong. The support level is crucial; if it can't hold, it's really over. The tight supply of spot gold is a reassuring sign. Is it a golden pit or a big pit? We'll see within one or two weeks.

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RealYieldWizard

· 01-08 00:48

Year-end rebalancing drama, silver was hammered to the ground. But the real story isn't over; the central bank is still quietly bottom-fishing. This is a signal. --- It's again the fault of mechanical trading, when prices rise too fast, they have to cut. This logic has been seen through long ago. The problem is, the fundamentals haven't really changed; demand for photovoltaics and chips is still there. --- Haha, silver is now just a pitiful victim of concentrated smashing, but isn't its scarcity still there? Wait until things calm down, and it might be the last chance to get in. --- Don't panic, this is just Wall Street's routine. The real bagholders are those chasing the highs; now coming out is just foolish. --- The central bank is buying, geopolitical chaos isn't over, how could it really be finished? Once the passive selling pressure is released, there's more to come. --- Silver drops the hardest because of its small capacity, making it easy to panic. Conversely, the opportunity is also greatest—depends on who dares to bottom-fish. --- This round of decline is purely a mathematical game, not a market collapse. If support levels can't hold, that's the real signal. Those selling now should regret it.

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AlgoAlchemist

· 01-08 00:47

Year-end rebalancing is indeed an old trick, played every year. Silver was hammered so hard this time, it actually looks more and more like a bottom signal.

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ImpermanentTherapist

· 01-08 00:42

The year-end rebalancing routine happens every year. Retail investors panic as prices fall, while institutions are buying the dip. Why does no one remember the signal from the central bank's gold purchases?

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CryptoComedian

· 01-08 00:21

Smiling and then crying, silver soared 148% and was smashed to pieces, this is called the "Roller Coaster Experience Card." The Wall Street year-end clearance sale is really ruthless, just like cleaning out my refrigerator—throw away the delicious ones first. The central bank is still buying, geopolitics are still chaotic, industrial demand is still there, but the market speaks the truth—that's reality. Silver has a small volume and is easy to smash, but the shortage is real. Wait for the pressure to release and see if the support levels hold. Don't chase anymore; just treat the next 1-2 weeks as the market going crazy. Once it stabilizes, we can act. The pie is still a trap—wait and see when the truth comes out. The long-term logic hasn't been broken; it's just a collective passive exit. The saying "a sharp decline is a golden pit" is repeated every year, and every year some fall for it.

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