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The precious metals space has been a mess lately. Silver ripped higher, then collapsed <\/a>almost 30% in what felt like days, and mining stocks have been swinging like meme assets. For most traders, that kind of volatility looks like danger. For macro investors, it looks like a reset.<\/p>\n That\u2019s exactly the framing financial analyst Kevin Smith is pushing in a recent viral post, where he argues the pullback in gold, silver, and miners is not the end of the move, but the beginning of a much larger cycle.<\/p>\n His core point is simple: the dollar may be entering a third historic devaluation wave, and silver could end up being one of the most explosive trades of the decade.<\/p>\n The Chart\u2019s Message: Gold vs. Stocks Tells the Dollar Story<\/p>\n Smith\u2019s chart tracks gold relative to the S&P 500 over nearly a century, and it highlights three major periods where the dollar lost real purchasing power in structural waves.<\/p>\n When gold begins outperforming equities over long stretches, it\u2019s usually not because investors suddenly love metals. It\u2019s because confidence in the currency and the financial system is quietly eroding.<\/p>\n The chart marks two clear historical devaluation eras:<\/p>\n The first came during the Great Depression, when the US government forced citizens to surrender gold and then officially devalued the dollar by raising the gold price.<\/p>\n The second began in 1971, when Nixon closed the gold window, ending the Bretton Woods system and allowing the dollar to float freely. That decision unleashed a decade of inflation and a massive repricing of hard assets.<\/p>\n Smith argues we are now approaching the third.<\/p>\n The \u201cFalse Start\u201d in the 2000s Was Only the Warm-Up<\/p>\n The chart also points to what Smith calls a \u201cfalse start\u201d in the early 2000s.<\/p>\n Gold surged during the dot-com collapse and again during the 2008 financial crisis, but the system never fully reset. Instead, the US responded with financial engineering: low rates, QE, and an ever-growing debt burden.<\/p>\n That delayed the cycle, but didn\u2019t eliminate it.<\/p>\n Now, the pressure is back, except the imbalances are far larger.<\/p>\n US deficits are historic. Debt servicing costs are rising. Equity valuations, especially in megacap tech, are stretched to levels that resemble 1929, 1972, and 2000.<\/p>\n That\u2019s the backdrop Smith believes sets up the next major rotation.<\/p>\n Read also: Silver Price Crash Is Over \u201cFor Real This Time,\u201d Analyst Predicts a Surge Back Above $90<\/a><\/p>\n Why Silver Matters More Than Gold in This Setup<\/p>\n Gold is the headline hedge. Silver is the volatility hedge.<\/p>\n Silver tends to lag early in macro cycles, then violently catch up once capital starts moving into hard assets in size. It\u2019s smaller, thinner, and far more sensitive to both investor flows and industrial demand.<\/p>\n That\u2019s why silver doesn\u2019t grind higher. It snaps.<\/p>\n And Smith\u2019s point is that the recent correction is not bearish. It\u2019s a healthy pullback from overbought conditions before the next leg higher.<\/p>\n If the dollar devaluation thesis plays out, silver historically becomes one of the biggest upside expressions of that trade.<\/p>\n Read also: This Analyst Makes Urgent Silver Price Prediction<\/a><\/p>\n The Great Rotation Has Already Begun<\/p>\n Smith describes what he calls the \u201cGreat Rotation\u201d as a shift away from:<\/p>\n US megacap tech And into:<\/p>\n Precious metals like gold and silver This isn\u2019t a retail narrative. It\u2019s the kind of institutional repositioning that happens over years, not weeks.<\/p>\n The chart\u2019s implication is that gold\u2019s outperformance versus stocks may be entering an early-stage breakout, similar to prior devaluation cycles.<\/p>\n And if gold is starting that move, silver usually follows<\/a> with far more torque.<\/p>\n Why the Recent Silver Crash Might Not Be the End<\/p>\n The past few months have shown something unusual: commodities swinging 15\u201320% like crypto.<\/p>\n Silver touched extreme levels, then dumped hard, shaking out late buyers and leverage.<\/p>\n Smith argues this is exactly what happens at the beginning of new macro cycles. The early phase is messy, violent, and emotionally exhausting.<\/p>\n But those conditions often create the entry points that look obvious only in hindsight.<\/p>\n Subscribe to our YouTube channel<\/a> for daily crypto updates, market insights, and expert analysis.<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/02\/image-511-1024x737.png\")
Source: X\/@crescatkevin<\/a><\/p>\n
Large cap stock indices
The US dollar itself<\/p>\n
Critical materials
Resource equities
Foreign markets<\/p>\n
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