Yunnan Investment Management Co., Ltd.

In fact, observing the performance of the spot precious metals index from the end of last year to mid-January this year, we noticed that: because the public generally held relatively optimistic expectations for the economic direction after Obama took office, the stock market was stable for a time. This process China's spot precious metals experienced a short-term sharp decline, but as people's optimistic expectations for the economic situation continued to weaken, the stock market fluctuated and weakened again, and spot precious metals also rebounded again. Does this mean that the weakening trend of the spot investment economy will also encourage the further strengthening of spot precious metals? It should not be easy to draw such a conclusion. Because we have emphasized before: According to traditional theory, in the long term, currency value and development trends should correspond to the country's economic strength and development trend. Therefore, we believe that under the background that the economic situation of spot investment continues to weaken, spot precious metals can only maintain relative short-term strength at best under the influence of human will. Due to the excessive issuance of spot precious metals, regardless of whether the spot investment economy stabilizes in the short term or continues to weaken in the long term, there is always the possibility that spot precious metals will depreciate again in the long term. The spot precious metals index has recently shown resistance again at its mid-year highs, which I think reflects to some extent concerns about the same outcome in the context of both possibilities.
Based on the above understanding of the trend logic of spot precious metals, let’s talk about the relationship between spot precious metals and investment in spot precious metals. In my opinion, from the traditional negative correlation to the recent positive correlation, this logical change itself has hinted that the factors affecting the price trend of investment spot precious metals have quietly undergone major changes.
I think the underlying reason for this change comes from people's reflection and re-understanding of the current global monetary system. After spot precious metals were decoupled from investment in spot precious metals in the 1970s, they began to be issued unfettered. After the financial crisis broke out from spot investment last month and quickly spread around the world, people began to pay attention to the financial market for decades. A profound reflection on the history of the past year!