This year's precious metals performance has been quite fierce. Gold is up 62%, copper has risen 36%, but what you might not expect—silver has soared by 95.3%, leaving other assets far behind.

There are actually clues behind this trend. Using the Merrill Lynch Clock framework, we are currently at the critical juncture where inflation is shifting toward stagflation. You'll notice: oil and gas prices remain sluggish, while defensive assets are surging, and precious metals keep hitting new highs.

At times like these, during a cycle transition, it feels a bit insecure not to have some gold and Bitcoin on hand. After all, when market sentiment is this delicate, allocating some hard currency assets really isn't a bad idea.