Some of us have to learn the hard way.

Some of us are what teachers would call “kinesthetic learners.” We have to feel what’s going on, by living the moments, or by taking apart a machine and putting it back together again. We see PowerPoint slideshows, but that visual experience isn’t enough to convey the point. Listening to lectures doesn’t come close to helping us internalize the lesson. But involve us, and we understand.

The price of becoming great at pattern recognition is time. Live through a few cycles, and you can pretty much know what’s coming next.

With that in mind, I would like to direct your attention to these charts. They are gold, silver, and platinum on monthly charts from January 1, 1976, to December 31, 1982.

We don’t need any arrows or annotations. First, for all three charts, there are monumental rallies to insane highs. And then, second, we have dire sell-offs from those highs.

I’m sure of the first repeating itself, and sooner, rather than later.

However, thanks to the current and future debt levels, imminent rate cuts and quantitative easing, and the feel-good sensation of inflation pumping up asset prices for the wealthy donor class, I’m not sure the post-rally sell-off this time will occur to the same degree as it did in the early 1980s.

Bellbottomed History

Let’s hop in the time machine and head back to the late 1970s, when bell-bottoms were wide, inflation was wild, and everyone thought precious metals were going to the moon.

Gold, silver, and platinum weren’t just commodities then — they were the only lifeboats in a sea of sinking fiat. Inflation was raging, oil shocks were rattling the globe, and they made the world’s geopolitical nerves twitch like an overcaffeinated chihuahua.

Investors piled in. Gold vaulted from under $150 to nearly $850 an ounce. Silver, juiced by the now-famous Hunt Brothers corner attempt, rocketed from under $5 to over $50. Platinum tagged almost $1,000. It was pure, uncut mania.

And then came Tall Paul Volcker. The cigar-chomping Fed chair hiked interest rates into the stratosphere, nuking inflation—and the metals market with it. By the end of 1982, gold had halved, silver was back under $11, and platinum was barely hanging on above $390. The party was over, the punchbowl had been confiscated, and the hangover was brutal.

The lesson? Precious metals can deliver spectacular gains when fiat fear hits fever pitch… but when central banks slam the brakes, gravity reasserts itself fast.

Today’s metal bulls should study the above charts like scripture. Because if history rhymes, you’ll want to know precisely when the music stops.

A Brief Word on the Rude Portfolio

In April 2024, I laid out my case as to why it was time to swing for the fences. Then, when Powell cut 50 bps before the election, I sold my stocks.

Three weeks later, I was back with a roughly similar portfolio, albeit with some caveats since then.

• CDE bought SILV (I owned both at the time), so that’s why you don’t see SILV in the portfolio. CDE is now my largest position by far.
• I sold Hudbay (HBM) a long time ago, although it has performed very well recently.
• I sold half my position in SBSW to buy VZLA.
• This past week, I sold ORLA to buy AYA.TO.
• I own HL, but in an options trade I’ll reveal below.
• I sold ABSA.TO to buy DSV.TO, and then ABSA immediately roofed it. It looked like a terrible trade, but since the beginning of this month, Discovery (up 75.29%) has surpassed ABSA (up 55.39%) by a considerable distance.

Note: If you’re wondering why I’m selling some positions to buy others instead of just buying new ones, it’s because I’m fully invested. Like I said, I’m swinging for the fences, and it’s paid off handsomely so far.

In fact, it’s been a fantastic year so far. And I think it’ll keep going for a while. If you’ve picked even a few of these stocks, you’ve done well. 

Let’s review the stocks in the unofficial, untracked Rude portfolio in alphabetical order, using weekly charts (as in the Monthly Asset Class Report).

Gold and Silver Miners

AG

Like Hecla (HL), First Majestic (AG) was all over the place for ages. The volatility was turning my guts to water, and I really wanted to sell it. Luckily, I kept my cool, and in June, it popped nearly two bucks.

After that, I knew we were on our way. We’re practically at our price target of $10.90. But if I had to eyeball it, I’d say $15 is the next price target.

ASM

I’ve owned this stock since April 2024 (excluding my 3 weeks of madness in September 2024), and it’s been a hoot. From about $0.80 to now $4.37, we’ve got some ways to go on this stock, as well. We’re at our price target on this stock as well, but I’d be looking for at least $7 in the next few months. 

AYA.TO (Just bought with ORLA’s proceeds)

Aya’s chart wasn’t all that compelling until its breakout three weeks ago. ORLA had stalled, so I thought it was time to exit that stock and use the proceeds to buy Aya. Aya’s next target is $21.17, which would be a 32.7% move from here.

CDE

When CDE swallowed SILV, it took a while to digest. And then, et voilà, a breakout occurred the first week of May, followed by another one the first week of August, making CDE the buy of a lifetime. Its next target is $17.00, but I think it’ll fly past there once silver hits $50.

DSV.TO

At first, I thought I had made a mistake selling ABRA to buy DSV. However, it has paid off since the beginning of this month (up 75% over my holding period, outperforming ABSA over the same period). I can see $10 easily on this chart in a year, but there’s no official new price target yet.

EXK

EXK was up and down, up and down. And yet, it’s a huge winner. The next price target is close at $6.70, which it’ll easily surpass. But things are looking up for this stock for the near future, at least.

FVL.TO

If Eric Sprott owns a truckload of something, you should, too. That was my logic when I bought Freegold. Since I bought it, its value has increased by 73% in CAD terms and 79% in USD. 

HL

Hecla went vertical after over a year of going sideways. I hated the stock and sold it ages ago, if only to save my sanity. But I thought I’d participate in the recent madness. So I bought the Jan 2027 15 calls for $1.34. They closed on Friday at $2.03, a 48% gain in only six days. I’m riding this out, as I have a lot of time, and I think silver will hit $50… maybe even by January 2026, let alone January 2027.

ITR.V

Integra has a beautiful uptrend in place, and it’s accelerating exponentially. Let’s see. It’s already hit its price target, but I think with a $50 silver price, we could easily see $8 to $10.

KGC

This may be the most spectacular chart I’ve ever seen, NVDA notwithstanding. KGC, which I’ve held for ages, is up nearly 4x since April 2024. Now we’re at a stage where the math takes care of itself.

ORLA (Just sold and used proceeds to buy AYA.TO)

I no longer own ORLA, but wouldn’t be surprised to see another up leg. It’s been moving sideways since March, and I just got tired of holding it. That, and I thought AYA would outperform it. If you disagree, that’s fine. But I’ve already booked a roughly 140% gain, so I’m pleased. If it becomes compelling again and I decide to buy, you’ll be the first to know.

VZLA

Viszla is my newest buy (with 50% of my SBSW position). Since I just got in, it’s been a yawn fest, but I expect that to change.

Speaking of SBSW…

The Platinum Miner

SBSW

You need to own SBSW if you expect platinum prices to recover. I do, which is why I only sold half this position (at around $8.25) to buy Vizsla. If we get another up leg, like the last one, I’ll be thrilled.

Wrap Up

That’s my portfolio life at the moment. I can’t open the kimono any further than I did. If you already own this stuff, congratulations! You’re well on your way to prospering when the rest of the world suffers inflation.

As you’re reading this, I’m on my way to Riyadh, Saudi Arabia, to teach a course again. I’ll be writing you from there for tomorrow’s edition.

Have a great week ahead!