“Gold is headed to $8,000 an ounce,” I told the audience in Las Vegas last month.

I had 30 minutes on stage at the annual Stansberry Conference. I shared my market outlook, explaining why stocks are headed higher. But for the biggest gains, I told the audience that gold and other precious metals were the best bet.

Unfortunately, my timing wasn’t ideal…

You see, gold was up about $1,000 an ounce over the prior two months. It had moved too far, too fast. And I warned the crowd that we were due for a correction… before the rally continues and gold reaches higher heights.

And that correction began immediately. The day after I shared my message, gold suffered its worst one-day fall since 2020, dropping 5.3%.

It was a painful yet overdue sell-off. But it doesn’t mean the gold boom is dead. History tells us the opposite.

In fact, since 2000, this kind of painful one-day sell-off has led to strong one-year rallies. And that means you shouldn’t give up on gold just yet.

Let me explain…

Big One-Day Drops Don’t Signal the End for Gold
My talk might have marked the top of the gold market in the short term. But you should never make a long-term bet and worry about what happens the next day. You’ve got to take everything in stride.

That’s true with gold right now. The metal has sold off from its recent highs. But the overall trend is still solidly up. Take a look…

When you step back and look at a long-term chart, the trend in gold is clear: Prices are still in an uptrend.

And we can expect that to continue…

The rare 5%-plus one-day fall that happened last month isn’t a reason to sell. At least, it hasn’t been in the past 25 years. Here’s what has happened after similar setups since 2000…

Gold is a boom-and-bust asset. But over the past 25 years, it has delivered an impressive 11.6% annual return. That’s better than the S&P 500 Index over the same period.

But with gold’s boom-and-bust nature, buying at the right time is key. And surprisingly, a painful one-day correction can be one of those times.

Similar setups led to gains of 2.1% over three months, 3.9% over six months, and 12.5% over a year. These returns give us good insight into what could be next for the metal…

First, notice that gold tends to underperform a typical buy-and-hold strategy over three and six months. But over a year, it outperforms.

That means we could see continued weakness for gold over the next few months. But the lack of a quick snapback rally doesn’t mean the boom is over.

Instead, after a few weak months, this trend will likely kick back into gear. I still think gold will rally over the next few years. And this rare setup shows it.

So while we may see more short-term weakness, now is not the time to give up on gold.

Good investing,

Brett Eversole

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Source: Daily Wealth