Title: Jade Investment: Navigating Cycles, Uncovering Value – My New Perspective on Jewelry Investment

Hello everyone, I'm Liu Siyuan. Having toiled in the jade industry for over two decades, from an apprentice to an industry observer, I've witnessed the dramatic shifts in the jade market and accumulated some unique insights into jewelry investment. Today, I'd like to share my thoughts on current jade investment, hoping to offer collectors and investors some fresh perspectives.

I. Market Status: Opportunities and Challenges Amidst a Divided Landscape

The current jade market presents a "divided landscape," experiencing both highs and lows. On one hand, scarce resources like high-end jadeite and Hetian jade maintain robust prices, even reaching new highs. The transaction prices of top-tier materials often exceed common imagination, supported by their scarcity, cultural value, and investment-hedge properties. On the other hand, the mid-to-low-end market appears somewhat sluggish, plagued by an oversupply of homogeneous products, consumer aesthetic fatigue, and fierce price competition. This divergence presents both challenges and opportunities for investors.

The challenge lies in the fact that investors who blindly follow trends and lack professional knowledge can easily be misled by market appearances, purchasing products of low value. The opportunity, however, is that during market adjustments, it's an excellent time to deeply explore potential stocks and plan for the future. The key is to possess a "discerning eye" that can penetrate superficial appearances and grasp the true value of jade.

II. My New Investment Perspective: A Leap from "Material" to "Culture," and Then to "Financial Attribute"

In the past, when we discussed jade investment, we often focused on the "material" aspect, paying attention to the jade's texture, clarity, color, and craftsmanship. While this is fundamental, as the market evolves, I've found that merely staying at the "material" level is no longer sufficient.

• Deeply Exploring "Cultural Attributes": As a carrier of Chinese civilization, the cultural connotation of jade is the soul of its value. A piece of jade is not just a stone; it embodies history, art, philosophy, and emotion. For instance, a beautifully carved ancient jade often holds historical and artistic value far exceeding the value of the material itself. In investment decisions, we should place greater emphasis on the cultural stories, craftsmanship heritage, and historical significance embodied by the jade.

I once met a collector who owned a Qing Dynasty imperial jade artifact. The material was not top-tier, but its exquisite carving, unique patterns, and clear provenance made its value far surpass ordinary jade pieces of similar material. This is the significant premium brought by cultural attributes. Therefore, I advise investors, while focusing on the material, to also delve into the cultural background, artistic style, and historical origins of jade.

• Perceiving the Rise of "Financial Attributes": With increasing global economic uncertainty, jade's role as a safe haven and a means of preserving and increasing value has become increasingly prominent. It is no longer merely a luxury item but has become a hard currency, an investment tool against inflation and for diversifying risk. Especially high-end rare jade, its limited supply coupled with continuously growing demand, endows it with strong financial attributes.

For example, in recent years, high-quality jadeite bangles have repeatedly fetched astronomical prices at auctions. This is not just about aesthetic demand but also the pursuit of scarce resources by the wealthy, a strong demand for asset preservation and appreciation. For investors, this means that in asset allocation, certain categories of jade with clear financial attributes can be appropriately included as part of a long-term investment portfolio. However, it's important to note that this type of investment requires extremely high professional knowledge and market judgment; not all jade possesses equal financial attributes.

III. Practical Case Study: From "Bargain Hunting" to "Value Investing"

I personally experienced a case a few years ago. At that time, the market's awareness of black jadeite (mokui) was low, and its price was relatively inexpensive. Through in-depth research into the cultural background, rarity, and unique beauty of black jadeite under specific lighting, I judged that it had enormous appreciation potential in the future. I decisively acquired several high-quality black jadeite ornaments. Today, the market price of black jadeite has multiplied several times over. This precisely illustrates the process of discovering value, moving from "material" to "culture" and then to "financial attributes."

This case also demonstrates that jade investment is not solely about "bargain hunting"; more importantly, it's about "value investing." Value investing involves thoroughly researching the intrinsic value of jade, including its material, craftsmanship, cultural connotation, scarcity, and market potential, and then purchasing it at a reasonable price for long-term holding.

IV. Summary and Recommendations: Professionalism, Patience, and Long-Term Vision

Jade investment is both an art and a science. It requires investors to possess professional knowledge, keen insight, and sufficient patience.

My recommendations are:

• Continuous Learning, Enhancing Professional Capabilities: Jade knowledge is vast, ranging from mineralogy to history and culture, from appraisal to market analysis. Continuous learning is essential. Only with professional knowledge can one make informed investment decisions.

• Focus on Scarcity, Pursue Quality: In jade investment, scarcity is the core of value. Prioritize high-quality, rare jade varieties, such as high-ice-grade jadeite, mutton-fat Hetian jade, etc.

• Emphasize Culture, Uncover Connotation: Don't just look at the surface of the jade; delve deeper into its cultural background and artistic value. Jade with stories and heritage often holds higher value.

• Maintain Patience, Adopt a Long-Term View: Jade investment is a long-term endeavor, and market fluctuations are inevitable. Maintain a calm mindset, don't be troubled by short-term fluctuations, and view investment with a long-term perspective.

• Choose Carefully, Mitigate Risks: The jade market is mixed, with an endless stream of counterfeit and inferior products. Always choose reputable dealers and seek assistance from professional appraisal institutions.

Jade investment, like savoring fine tea, requires careful appreciation to truly taste its essence. I hope my sharing can offer some beneficial insights for everyone on their jade investment journey. Thank you all!