Gold and silver plummet, causing a market crash! Asian stock markets face Black Monday: it's all because of "high leverage".

Since the global financial crisis erupted, the scale of margin debt used to purchase stocks has soared to historic levels, providing a key clue for analyzing the sharp drop in Asian stock markets after the precious metal sell-off. Last week, against the backdrop of a surge in funds flowing into gold and silver exchange-traded funds (ETFs), the outstanding margin debt at the China Securities Exchange climbed to a historic high. At the same time, related margin debt indicators in China, Taiwan, and Japan also surged to levels not seen since the 2008 financial crisis, when gold, silver, and global stock markets all set new records. Now, in just two days, the prices of precious metals and stocks have quickly rebounded, with precious metals experiencing their largest single-day drop in over a decade. This situation has sparked speculation in the market, with many believing that some leveraged investors are being forced to sell assets in their portfolios to meet financing needs. Nick Ferres, Chief Investment Officer at Singapore's Vantage Point Asset Management, said that the phenomenon of a rapid sell-off in multiple asset classes is a signal that leveraged funds are unwinding their positions. He mentioned that the fund has "shifted to a defensive strategy," heavily allocating to short-term bonds to weather the current market turbulence. On Monday, selling in Asian stock markets appeared widespread. The tech-heavy South Korean market experienced a sharp decline, with the Korea Composite Stock Price Index (KOSPI) falling by over 5%; Taiwanese stocks, as well as stock index futures in the United States and Europe, all fell by over 1%. Gold and silver prices plummeted, the US dollar strengthened for the second consecutive day, and US Treasury bonds rose across the board.