Recently, gold and silver have been surging aggressively. Many are pondering a question: which is more risk-resistant—virtual gold (like cryptocurrencies) or physical gold? This is a good question. Let's first look at the phenomena and then analyze the logic.

**What does the simultaneous rise of gold and silver mean**

Gold and silver soaring together points to several directions—first, a rise in macro risk aversion sentiment; second, market bets on monetary easing and rate cuts; third, the US dollar's credit is under some pressure. Silver is rising even more sharply because it not only has financial attributes but also industrial demand is exploding. The supply gap is evident, so its volatility is naturally higher.

**Interpretation of macro policy signals**

Let's look at the current situation:

Geopolitical tensions and concerns about economic recession are continuously emerging, and funds are flowing into "safe havens." The Federal Reserve may cut interest rates or loosen policies. What does this mean? For gold and silver, which do not pay interest, the opportunity cost decreases. Funds previously attracted by bonds and money market funds are starting to flow into precious metals.

More importantly, the US dollar's credit is weakening. US debt is piling up, and the trend of de-dollarization is advancing. Therefore, gold and silver are seen by the market as "barometers of monetary credit"—rising gold prices often indicate declining trust in the dollar. Meanwhile, inflation concerns have not dissipated; holding gold and silver can lock in long-term purchasing power, which is quite practical for asset protection.

**Gold vs silver: why do they rise differently**

The driving logic behind these two is actually different. Gold mainly relies on its financial attributes—central banks' continuous purchases, investor risk aversion, and store of value—these are the supporting points. Silver is different; it has a dual engine of finance and industry. Demand for silver from photovoltaics, electric vehicles, and AI chips is surging, coupled with already low inventories, and structural shortages are evident. Therefore, silver's gains are usually more aggressive than gold's.

**How broad is the impact**

For individuals, the appreciation of gold and silver assets increases their value, which in turn raises the cost of jewelry and investment-grade gold. In an inflationary environment, gold and silver serve as a "insurance policy" for household assets.

For institutional investors, the allocation ratio of precious metals needs to be increased to hedge against stock and bond volatility. However, industrial companies related to silver (like photovoltaic plants and electronics manufacturers) face rising costs, so hedging work cannot be neglected.

From a global market perspective, the strengthening of precious metals usually accompanies increased volatility in risk assets. The strong industrial demand for silver also reflects the acceleration of green transformation and technological upgrades.

**How to allocate, and what are the risks**

Honestly, gold and silver are quite volatile, especially silver. Its smaller market size and strong industrial attributes mean its price swings often exceed those of gold, so caution is needed regarding pullbacks.

The upward trend is often driven by medium-term factors, but in the short term, policy statements and geopolitical events can cause shocks. Therefore, chasing the high is not recommended. Gradual entry and strict stop-loss are more prudent strategies. Would you like to discuss how to set reference ranges for entry and stop-loss?