RE: Why the drop?27 Jan 2021 14:20
At a complete guess, I would suggest that at least part of the drop today is that, at a time when most miners are posting record (or at least excellent) results, ours are mediocre at best &, by comparison, look poor. People may well be jumping ship to other mining stocks where results (but not necessarily the outlook) are better.
Board members may recall that I did jump aboard the First Majestic bandwagon back in November & am currently up 28%. My gain on FRES is a little more difficult to calculate as, having bought in at £6.60 in October'19, I sold half at £13.52 in October'20 before buying back barely three weeks later at £11.27. Depending where you draw the line (& whether or not you realise profits) I'm up, down or indifferent.
What I can tell you, is that my mining portfolio, which was up over 70% last August, is now up a mere 18%. The whole sector has gone sideways since the summer. Like (I suspect) most others, I'm here to play the PM leverage trade as currency debasement is a foregone conclusion. If you recognise The Great Reset for what it is, then you probably believe that we face total fiat currency destruction & a new monetary order (lets' not forget CBDCs are barrelling down the track & the IMF is calling for "a new Bretton Woods"). Right now, I believe the biggest threat to the sector is a "global carbon tax". As part of The Great Reset, any business emitting carbon will be taxed on it (the UN has also backed this). Needless to say, miners emit a ****-ton. For me, the issue is not "will PMs rise": they will. The problem is, how much of our gains are we going to lose to a carbon tax (assuming it's implemented)?
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