Have you also been flooded with news about the gold market recently? Gold has broken through 4500 again, with a rise of 150% since early 2024; silver's performance is even more aggressive, jumping from 33 to 72 in just half a year, also up 150%. The discussion of precious metals has even started in crypto groups, and this kind of enthusiasm is indeed rare.

Looking back at history, you'll find that the scene of gold and silver soaring together has only occurred twice: once during the high inflation and negative real interest rate era from 1979 to 1980, and another during the crazy QE period after the 2009-2011 financial crisis. Both times, a dramatic surge in gold and silver was unmistakably played out.

The pattern seems quite clear—at its core, it all boils down to one sentence: money is losing its value. High inflation, low or even negative real interest rates, coupled with mounting debt problems, leave capital with no choice but to flow into hard assets.

But there's a key point here—things are actually a bit different now. Inflation is below 3%, and interest rates are not considered low. The market is more betting on future currency devaluation, debt pressure, and US stock market risks, rather than the current inflation pressure in front of us.

What happened during the previous two episodes? Gold entered a long-term correction after its frenzy, and during the phase when gold prices weakened, the US stock market instead entered a major bull market.

Applying this logic to now: we are not in a recession, nor in a true tightening phase; it’s more like a period of economic prosperity. As long as the US stock market can maintain its strength, cryptocurrencies are unlikely to face major issues.

So don’t be scared—gold and silver soaring together is often a signal in the later stage of a market cycle. Once gold begins to correct, liquidity might flow into stocks and crypto, which could actually lay the groundwork for the next long bull run.