Gearing up for ‘Gold’s Third Act’

Friday 30^th January and Monday 2^nd February 2026 will go down in history as the day when humanity lost a huge amount of wealth.

The two largest assets in the world by market value, gold and silver, fell by 15% and around 33%, respectively.

Putting it into context, gold and silver’s decline topped US$6 trillion. That’s more than triple Australia’s GDP last year. That happened in TWO DAYS!

It may not rank as the biggest retreat in the market, but it should be among the top 10.

Interestingly, the world hasn’t melted down. And the mood among investors was nothing like when the stock markets crashed in September 2001, September 2008, March 2020, and April 2025 after Liberation Day.

That may be a good thing. Especially if you’ve been paying attention to gold, silver and precious metals assets.

After all, I’m not here to write about how the monumental fall of gold and silver spells the end of the precious metals bull market. Rather, it may have set up a life-changing opportunity in this space if what I’m expecting does play out.

But it’s not in gold, silver or the platinum group elements…

Not in the leading names amongst gold miners such as Northern Star Resources [ASX:NST], Evolution Mining [ASX:EVN], Genesis Minerals [ASX:GMD], Ramelius Resources [ASX:RMS], etc.

But in more obscure names.

Many people will back off when they hear this.

Buying penny dreadful mining stocks? No thanks! You might as well punt at the roulette table at the casino or pick random numbers for a lotto ticket.

It doesn’t have to be like that though.

Why? Because there’s a better approach.

I’m going to reveal this here… follow me!

The different stages of
a gold bull market

You might think I’m only talking my own book. After all, I’ve been a gold and silver enthusiast for over a decade.

Well, speaking of my own book, I do have one, literally. I only just finished writing it. It’s titled Gold’s True Message: A Guide to Building Wealth in a Failing Monetary System.

So yes, pardon the pun but I can’t resist doing that.

But I don’t think anyone can accuse me of being a broken record on gold. After all, I was recommending gold investors take profits before the stunning correction. And boy did I cop it from those who disagreed at the time!

Back to what I was saying… the opportunity ahead for precious metals.

It’s important to note that there has been a bull market in gold and precious metals assets since gold bottomed in late-2022. People didn’t really feel the bull market until March 2024 when Federal Reserve Chair Jerome Powell announced that there would be three rate cuts for the year. That sent gold on a rapid increase as you can see below:

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Notice how from around October 2022 to March 2024, gold was setting up for a breakout.

You can call that the first stage of the bull market. It looks rather benign, with gold rising gently.

But look beneath the surface and you’ll find early movers and gold/silver enthusiasts taking their positions.

Not so much in gold bullion, but in mining stocks.

Let me show you the ASX Gold Index [ASX:XGD] which measures the performance of the leading names in gold mining companies. It includes producers, late-stage developers and a handful of explorers that have stellar prospects:

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You’ll notice a similar bull market for gold stocks. However, there is a more distinct uptrend from late-2022 to March 2024. So we’ve found where the smart investors were taking their positions.

But this was the early stage. Some made a solid profit buying the big names, which were first to head higher.

Let’s call that the ‘first act’.

The ‘second act’ is coming up.

Building the momentum
and turbocharging gains

Notice above how gold and gold stocks started firing up from March 2024. The prospect of falling interest rates was a strong catalyst to spur a buying spree. The momentum grew into the year and carried onto 2025.

Prices didn’t rise in a straight line, of course. There were corrections. Some more brutal than others along the way. However, each correction handed investors the chance to enter at lower prices.

What you mightn’t see from the two charts is how investors shifted from more established gold mining companies to those in the earlier stages, such as explorers and early-stage developers.

Here I’ll introduce my in-house Speculative Gold Stocks Index. It tracks the progress of around 80 pre-production companies below $500 million:

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It’s a different shape, as you can see. These stocks only started catching fire in 2025, trailing gold and the more established gold stocks.

But what may interest you is that these companies outperformed gold, established gold stocks, and even silver. In fact, this Speculative Gold Stocks Index jumped by more than 160%!

Gear up for the third act!

By now, I hope you can see why I’m excited about the coming prospects for gold, silver and precious metals assets. It could only have come with the recent flash crash in this space.

Without it, you’d be chasing gold while it’s going vertical. That would guarantee you a walloping, just as what we saw happen earlier this month.

But with this shakeout, faithless speculators and latecomers were cleared out. We also saw value re-emerge.

Gold, silver, PGEs, producers, developers and explorers all pulled back significantly. The decline wasn’t uniform, but I saw that gold stocks copped it harder despite them not surging as much as the metals did in January.

The smaller mining stocks tended to dive more than the producers. They were still only catching up to their larger peers in 2025, despite being the best performers in this space for the year.

That’s why I see these as most compelling potential reemerging again now. However, they’re not a space for the inexperienced and rash investors.

Most haven’t mined any gold or silver to generate revenue. They range from staking out patches of dirt to those building the facilities on a confirmed deposit.

That’s a wide range of companies to pick from. Not to mention geographic location, mineral resources exploited, management track record, and so on.

You can venture into this space randomly picking companies based on price and momentum indicators, news flow, stock tips, etc. Or you can have a more coordinated approach that considers the factors that drive value and can last beyond this coming uptrend.

If this idea suits you, I invite you to join 3,000+ readers in Australia who have signed up for a coming event launching this evening at 6pm.

Click here to find out more. I’ll see you there.