John Rubino is a former Wall Street financial analyst and author or co-author of five books, including The Money Bubble: What to Do Before It Pops and Clean Money: Picking Winners in the Green-Tech Boom. He founded the popular financial website DollarCollapse.com in 2004, sold it in 2022, and now publishes John Rubino’s Substack newsletter.
The recent precious metals correction seems to have made an impression on investors. So much so that almost everyone has turned bearish on gold miner stocks. The following is excerpted from a post by Ahead of the Herd’s Rick Mills:
Gold prices extended their decline toward $4,100 per ounce on Wednesday, reaching levels last seen in late November 2025, as US inflation data largely matched expectations and the Iran conflict intensified. Headline inflation rose to 4.2% in May, its highest since April 2023, fueled by soaring energy costs tied to the Iran conflict, while the core rate climbed to a seven-month high of 2.9%. (Trading Economics)
Gold’s fall from grace — it reached a record-high $5,589 on Jan. 28, 2026 — is graphed below in a six-month chart.
But the really telling picture of a sector in decline is the Gold Miners Bullish Percent Index, which has fallen to a jaw-dropping 0.
This index, referred to by its symbol $BPGDM on StockCharts, is not a price chart. Rather, it is a breadth and sentiment indicator that measures the percentage of gold mining stocks that are technically in uptrends versus how many have already rolled over.
This indicator is used as a tool to decide when to buy or sell gold mining stocks, but since gold stocks often move in tune with gold or silver, it can be a useful tool when determining the direction of the entire precious metals sector. The index can be used in conjunction with a gold price chart, or multiple other tools, to watch for additional confirmations of a trend.
The scale runs from 0 to 100. When readings are above 70-80%, it means most stocks are already extended. When readings fall below 30%, it tells you most stocks have already corrected. (Streetwise Reports)
The StockCharts image posted on X by Oliver Groß shows the Gold Miners Bullish Percent Index falling off a cliff. From 100 in January the index plummeted to 7.69 on June 5 after a decline from 30.77 in early June. After falling a historic 78% last week, one of the worst weeks in years for gold and silver equities, BPGDM hit 0 on Tuesday, June 9.
The Deep Dive states: “A zero reading means the indicator is no longer describing routine weakness. It shows that the internal technical base of the gold-mining group has been cleared out, at least by this measure.”
Metals and Miners blog argues “The speculative froth has been entirely violently wrung out of the market, leaving only the most hardened, value-focused capital behind.”
Streetwise Reports says “we have clearly moved from optimism… to stress… to fear.” The silver lining in the cloud, though, is we have likely reached a bottom:
“The selling has already occurred. The damage, for the most part, is already behind us rather than in front of us.”
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