Former National Review editor William F. Rickenbacker once remarked, “Gold would have value if for no other reason than that it enables a citizen to fashion his financial escape from the state.”

I’m starting to believe God is stalling gold’s rise to save as many of His people from the State - and the state of things - as possible.

Gold mining stocks remain incredibly cheap compared to the metal itself. Gold’s volatility is down, making its options cheaper. And we’ve got a new buying impetus: The Chinese Communist Party is letting its insurers in on the bullion buying game.

I’ll break that down below—but first, let’s check in on what’s happening in the markets.

Stocks May Be Kaput… For Now

Ignore Paul Tudor Jones’s quote up top. It’s not strictly true. The Nasdaq often does well after spending time below the 200-day moving average.

Credit: @TaviCosta

That said, the rally since December 22, 2024, has clearly fizzled. The next few weeks don’t look great—so you might consider reallocating capital from tech to metals.

Let’s revisit NVDA:

NVDA got crushed yesterday, dropping 5.74% to $113.76. As I write this, it looks like it’ll open another buck lower. The thick purple line is its 200-day moving average. NVDA has traded below it for about a month now. Judging by the severity of this last move down, I expect it to test the $102.82 support line next—and it might even touch $92.03.

That matters. NVDA is one of the most important stocks in the Nasdaq and the S&P 500.

Longer term, the real story is equities breaking down relative to gold. I’ve shown several charts from Northstar Charts on the coming “capital rotation event.” That view is gaining traction. This next chart comes from iGlobalGold, who agree: the precious metals bull market hasn’t even started yet.

Credit: @iGlobalGold

They might be right. Because something big just happened in China.

Chinese Insurers Can Buy Gold Bars Now

Much of this gold rally has been driven by central banks in Russia and China stacking bullion to de-dollarize and protect themselves from sanctions.

And now, for the first time, a Chinese insurance company—China Life Insurance—has officially purchased physical gold through the Shanghai Gold Exchange.

This isn’t just a financial footnote. It’s state-sanctioned.

The purchase is part of a pilot program from China’s State Financial Supervision and Administration Bureau. China Life is just the first of four approved insurance firms allowed to buy physical bullion.

This is no longer just the PBoC stacking gold behind closed doors. Institutional money in China is now directed toward physical allocation—likely part of Beijing’s broader de-dollarization plan.

If Chinese insurance funds become a steady source of gold demand, prices could explode.

It also explains why China stays silent on Western manipulation of gold prices: the cheaper it stays, the more they can quietly stack.

And if gold proves successful in these pilot programs? Silver could be next. I’ll dig into that in today’s Morning Reckoning.

Miners are Severely Undervalued

Check this out—HUI Goldbugs Index vs. gold futures:

Credit: @iGlobalGold

You still have time to get into mining stocks.

Since I re-entered the market before the election:

• Avino (ASM): +46.9%
  
  
• Kinross (KGC): +24.22%
  
  
• Orla Mining (ORLA): +91.78% (Northstar Charts’ pick)
  
  

Others I own—Integra (ITR), Abrasilver (ABRA), Sibanye Stillwater (SBSW), First Majestic (AG), and Endeavour Silver (EXK)—are up single digits.

Freegold Ventures (FVL) and Coeur Mining (CDE) are down single digits. Remember, Coeur recently acquired Silvercrest (SILV). I expect them to outperform once the deal settles.

I don’t own JAG, OGN, VZLA, DSV, HL, SAND, or NGD, but they might be worth a look.

Wrap Up

The Nasdaq’s losing steam. Chinese insurers are buying physical gold. Miners are still under-owned.

Now may be the last time in a while to get in at these historically cheap levels.

I can’t encourage you enough to consider it.

The chance of a precious metals rally increases every day. While I’m happy The Donald is back in the White House, his plans to lower long-term rates, pressure the Fed to cut short-term rates, and reintroduce tariffs are all inflationary.

And inflation means higher gold prices.

Have a great day ahead!