Hello TheoTrader,
We're days away from Q4 in what's been a wild 2025 ride.
I'm expecting Q4 to launch us into 2026 spectacularly.
And today I want to review one of 2025's best trades...Mining stocks.
Both gold and silver have crushed the S&P in 2025. Gold is having its best year in over four decades.
Let's talk about the best strategy going forward.
Returns and Liquidity Matter
The precious metals sphere overflows with emotional content.
One pundit tells you to convert your entire IRA to gold. Another says stuff silver coins in your mattress. I take a balanced approach.
Silver is starting to outrun gold short-term. This often happens before pullbacks occur. When the pullback comes, I want to buy the dip.
You won't see me buying physical gold or silver.
Physical metal premiums are steep. We're talking 20-30% premiums. Prices need to rise that much just for you to break even.
I buy mining stocks instead. Here's why.
Mining stocks outperform spot prices during bull markets. They offer superior liquidity and convert to cash easily. You can even earn dividends.
Physical bullion pays nothing and costs money to store.
The biggest factors for me are outperformance and liquidity. When investment themes present themselves, I want maximum reward with minimal risk.
Selling mining stocks takes button clicks. Selling metals means trips to pawn shops.
Look at First Majestic Silver (AG) as a perfect example.
The stock spent three years grinding sideways between $4-8.
Now it's exploded to over $12 in just weeks.
I’ve been on this name for a while now, using the weekly chart as guidance.
You can see where momentum really shifted in late May.
I first took a stab at this in July, but was stopped out for a 4.5% loss.
Fortunately, my second stab in August yielded far better results:
Was actually 1300 of the 3300 share position was closed because I’ve still got a trailer!
That's the kind of leverage you get with mining stocks that physical silver can't deliver. AG gave us a 200% move while silver itself moved just 30%.
The plan remains to ride this gravy train, especially with rates falling and dollar weakness. It's paradise for precious metals. Names like AG are just getting started.
Speaking of explosive sector opportunities…
My colleague Garrett Baldwin just cracked the code on the biggest tech wave of our lifetime.
While I'm positioning for the precious metals surge, he's built an entire system around one ticker that's been absolutely unstoppable.
Talk soon,
Gianni Di Poce THEOTrade