Many people will say that the plunge in international gold prices will be a signal of rapid economic growth, but personally, it may also be very pessimistic. The change that affects the price of gold must be caused by the imbalance between supply and demand, so we must admit that the plunge in the price of gold may be a large amount of funds flowing out of the gold market. Whether in the stock market or futures market, one of the key factors affecting the trend is the net outflow of funds. The imbalance between supply and demand, which affects the price, and the fall in the price of gold indicate that the funds involved in investment have been greatly reduced and the supply exceeds demand. The situation of oversupply will cause a large amount of funds to flow out, not all of them to flow in, thus causing a downturn in the market environment. But the outflow of funds should be considered from two aspects.

First of all, the economic market is booming and the demand for funds for other investments is soaring. In this case, the demand in the futures market drops sharply, and more funds flock to the real economy because of the prosperity of the market economy. Although the prosperity of the futures market is less, it just shows the rapid development and prosperity of the economy. Second, the potential economic crisis and collapse. As an investment product, gold can exist for a long time, mainly because it has formed a relatively stable state of understanding value in the history of financial transactions for so many years. Its scarcity and the understanding of value formed in the long transaction process make it have a special value attribute-hedging attribute. Then there is a problem here. When the gold price collapses, if the economic environment is not good, it is likely to bring the pessimism expected by investors, and the consequence is that no one invests and waits and sees conservatively, thus completely losing the investment enthusiasm of investors.

Pessimism is mixed with a sharp drop in funds. At the same time, if funds do not flow into the real economic environment, it can only explain the possibility of potential financial crisis. Although we have analyzed the impact of the gold plunge, the possibility of our gold plunge is extremely low. On the one hand, after World War II, the gold standard was established. The gold coin standard is a stable monetary system, but it limits the ability of monetary policy to cope with the domestic equilibrium goal. Only when the currency is linked to gold can the price be stable. On the other hand, "gold and silver are born with the property of acting as currency. Gold and silver are naturally not money, and money is naturally gold and silver. "