Just a quick note as you might be concerned with today’s run-up in gold.

In short, as I wrote previously, the situation in gold is difficult to forecast right now due to the extreme situation in the Middle East. That’s one of the reasons we’re not shorting gold, but junior mining stocks.

As the Israeli ground forces are expanding operations, gold – the safe-haven asset – rallied. Geopolitical events tend to have only a temporary effect on the price of gold, and the concern regarding war (based on data from Google Trends) has already peaked, so it’s unlikely that gold’s rally would be something that lasts.

And since mining stocks tend to underperform gold around tops – and that has been the case recently – I continue to think that short positions in junior mining stocks remain justified from the risk to reward point of view.

Both of our short positions: in GDXJ and FCX remain profitable, and it’s likely that those profits will increase in the following weeks.

As always, we’ll keep you - our subscribers - informed.

P.S. Please keep in mind that the possibility to extend your subscription for up to three years (at least by one year) with a 20% discount from the current prices is still open.

Locking in those is a great idea not only because it’s the perfect time to be ready for what’s next in the precious metals market but also because the inflation might persist longer than expected, and prices of everything (including our subscriptions) are going to go up in the future as well. Please reach out to our support – they will be happy to assist you and make sure that your subscription days are properly extended at those promotional terms. So, for how many years would you like to lock-in your subscription?

Thank you.

Sincerely,
Przemyslaw K. Radomski, CFA
Founder, Editor-in-chief