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Precious metals are taking a breather after a historic run.

In investing, nothing goes straight up or straight down. And gold and silver had both become egregiously overbought coming into last week. As Subu Trades notes, gold had rallied for 9 straight weeks and was a full 28% above its 200-day simple moving average. Historically, his analysis shows clearly that gold usually experiences a large pullback shortly after a run of this magnitude.

And that was precisely what happened. Gold fell ~6% yesterday in its largest single day drop. Gold miners fell even further, with the Gold Miners ETF (GDX) dropping 15%!

In light of this, many investors are asking if the historic bull market in gold is over.

The answer to that question is a resounding “NO!”

The reality is that gold is experiencing a tectonic shift in which EVERY major investment group is beginning to buy the precious metal.

• Individuals are literally lining up around the world to buy gold.
• Financial institutions are urging their institutional clients to get exposure to the precious metal with some even going so far as to suggest changing the 60/40 stocks to bonds allocation that has been the standard for the last 50 years to a 60/20/20 allocation of stocks, bonds and precious metals.
• Even central banks have become net buyers of gold for the first time in decades. Collectively, they’ve bought 1,000 tons of the precious metal every year since 2020!

Put simply, gold is experiencing an unprecedented amount of buying power for the first time in decades. And this is not about to change either: investors worldwide have realized that central banks are about to unleash another inflationary storm and are moving their capital to prepare for what’s coming.

You should do the same.

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