The Gold Rotation Isn’t Over Yet

Gold is the hottest commodity on the planet right now.

Earlier this month, in Singapore, a 70-something retiree arrived at United Overseas Bank – the only bank selling physical gold to retail investors – at 9:30 a.m.

Six hours later, she was still waiting to be called.

It was a similar story in Vietnam last month, even after gold and silver prices suffered their steepest two-day drop in months. At gold shops across Hanoi and Ho Chi Minh City, the lines of buyers went out the door.

One major shop in Hanoi closed just over an hour after opening. They had run out of gold rings and silver bars.

And in Australia a few months ago, crowds lined up around the block to buy gold and silver bars – like it was 1979 all over again.

I wasn’t alive in the 1970s, but I’ve heard the stories. Families struggling with sky-high prices, savings wiped out by inflation, markets in chaos.

It was a dark time for most investors… except those who owned gold. That’s when gold went from a forgotten relic to the decade’s top-performing asset.

Gold prices rose from $135 per ounce in 1977 to a high of $875 per ounce in 1980. That’s a 548% move higher in under three years.

I remembered that lesson in the early days of the Covid-19 pandemic. When the bottom fell out of the economy, I followed that same ’70s playbook.

In early 2020, the world was shutting down. Markets were in freefall. My friends were terrified about their jobs and their savings.

In the panic, I turned to what I believed was the safest trade on the board: gold. It was one of the best decisions I ever made.

From March to August 2020, gold soared 43%. The VanEck Gold Miners ETF (GDX) went up 180%. That’s more than a 4x greater return over the same time.

For a few months, that trade was the place to be. I booked seven triple-digit winners in under 30 days on gold and silver miners.

But by late summer, the mood was shifting. The world realized the lockdowns wouldn’t last forever. The panic faded.

All that safe-haven money sitting in gold started looking for a new home – something with more upside.

That’s when I rotated out of gold and into bitcoin and Ethereum. Once again, it was the right decision.

Bitcoin exploded from $5,400 to $65,000… and Ethereum from $400 to $4,400. That translates to gains of 1,085% and 1,000% in under a year.

Those weren’t just good trades – they were life-changing trades. It would take you an average of 26 years to make those types of returns from the S&P 500.

Now, over the past year, we’ve seen a similar rotation out of bitcoin and crypto… and into gold and metals again. As a bitcoin investor, it’s hard to stomach.

That’s why I’m sharing these wins with you. Not to rub them in your face while bitcoin freefalls. But to show you how cyclical these markets are.

Understanding where we are in the rotation – and what it means for both gold and bitcoin prices going forward – is key.