Gee, for a while there I didn’t think they loved us anymore: Precious Metals smash, on cue (intensity-wise, if not time-wise)
It was day after robotic day, week after robotic week, month after robotic month. Up went gold and the precious metals miners and royalties. All led by silver, as we anticipated back in the spring.
Now the first big hit to the bull proceedings has arrived. I will not pretend to have called it to the week, let alone day. I’ve been advising correction risk for weeks upon weeks, as indications like the Gold Miners Bullish Percent Index flashed their warnings. The idea was to be prepared, in whatever form that may take.
For me the form was puts on GDX, GDXJ and SLV, with GDX puts and silver bear ZSL now held after profit-taking on the SLV puts. But this was against core positions in gold miners and royalties that I chose to hold onto (thus needing put protection), after profit-taking on non-core items.
But that is just one faulty trader’s tack with his chosen positions. Being prepared can take the form of any number of actions, including mental preparation. What’s important for this article is the sector correction as a whole. As you can see, this one bloody day, October 21, is finally attending to the frothiness in a rude, but necessary manner.
As you can also see, froth had been evident for most of 2025. But the trigger, which amped up and focused our caution, came in the form of the HUI/Gold and SIL/Silver ratios, AKA sector “internals”. From Monday’s entry in the “In-Week Notes” aspect of the NFTRH Premium service. This was valuable information, as the nominal sector was positive on Monday:
Today, the downside followed through, but good. And this IS good. We have been noting for a few weeks now that the Silver/Gold ratio was rising to an extreme within its downtrend. This post at X describes the situation, as of last weekend’s premium report (NFTRH 885).
Above I noted this is “good”. The FOMOs, as stoked by the leadership of silver over gold, had to be drawn in and then run right back out. While further sector internal work will be reserved as premium content, let’s just say that a hard, fast and violent hit is preferable to a long, drawn out and grinding correction. It is also coming at the dawn of gold mining earnings season and prior to a noteworthy FOMC meeting.
We’ve been discussing the particulars in subscriber reports, updates and notes. But my advice to general readers is to be on your toes in the coming days. Things may happen fast enough to make your head spin.
The precious metals trade has come to one of those points where you don’t just sit there spewing dogma and make robo-profits. The (inflation vs. deflation) macro is in motion and thus this most macro-relevant sector is in motion. Judging by the intensity of the smash down, things are moving quickly.
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