A great time to derisk and take profit this week it seems. Just...

A great time to derisk and take profit this week it seems.

Just a few things I’d like to point out about the previous market that I think warrant mention.

Firstly, there is no point in trying to figure out what inflation might be moving forward. Even the top economists at the US federal reserve have been unable to decipher what inflation has been doing the last few years. It’s actually debunked the Phillips curve so what inflation might look like in the future is anyone’s guess. Just look at the gfc where people thought inflation would prevail but in fact they were all wrong.

Another thing too that people should be careful for is making comparisons with the post gfc gold and silver price increases with today’s prices. This is highly distorted as it’s been proven that the previous gold and silver booms were price manipulated by the likes of jp Morgan and Deutsche Bank. So imo calling for a long term stable price of silver at say $50+ is dangerously faulty. Anything above that is just insane.

Lastly with companies like PMY, people should be careful for the timing between today’s prices and prices at production, if any of them get there.

I suspect that any dip that is bought from now and subsequent price movements up will give the pro traders the time to do further selling from close to the highs and leave a few bag holders.

This all goes heavily against the grain of the ongoing narrative at PMY so no doubt I’ll be called out for it. Nevertheless people should be cautious here after last nights precious metals selldown. Nobody went broke taking profits regularly.

There will definitely be a trade here to take advantage of price volatility but be careful as I think last night marks an end to the previous markets stellar run.

With PMY, at the very least now one should think about the price of the next CR. After dilution will this still be worth 86M at .03 for 75% of the project? I dont know the specifics nor whether management will be able to make this mine profitable but you can all assume that PMY has been pumped like mad along with every gold and silver stock on the planet.

In light of all this, I reckon PMY is a sell in my book now, even though I sold at .012 in recent times which proved to be dead wrong.

I’m going to take a guess and say gold should stabilise at $1450-$1650 over the medium term and silver $19-$23.

Just be careful with all the hype everyone and don’t utilise pie in the sky valuations.