Joey Diekstra @JoeyDiekstra: "𝐏𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨 𝐚𝐧𝐝 𝐌𝐚𝐫𝐤𝐞𝐭 𝐔𝐩𝐝𝐚𝐭𝐞 The past..."

Netherlands

𝐏𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨 𝐚𝐧𝐝 𝐌𝐚𝐫𝐤𝐞𝐭 𝐔𝐩𝐝𝐚𝐭𝐞 The past few sessions have been dominated by an abrupt reversal in precious metals. After a prolonged and crowded rally, silver experienced one of its sharpest drawdowns on record, falling roughly 30% from recent highs in a very short time. Gold corrected as well, though in a more controlled manner. The speed and scale of the move mattered, not just for metals, but for broader risk sentiment. 𝐌𝐚𝐫𝐤𝐞𝐭 𝐂𝐨𝐧𝐭𝐞𝐱𝐭 📊 Several large banks and commodity desks have pointed to a mix of speculative positioning, leveraged exposure and forced liquidations as key drivers of the silver selloff. As prices accelerated higher, positioning became increasingly one sided. When momentum broke, margin calls and systematic selling amplified the downside. Some also highlighted that parts of the rally had started to price in very optimistic assumptions around inflation hedging and industrial demand, leaving little buffer once sentiment turned. Moves of this magnitude are rare, even for silver. Historically, they tend to mark a reset in positioning rather than a clean end to the broader cycle. Bounces are common, followed by periods of consolidation. 𝐖𝐡𝐚𝐭 𝐈 𝐂𝐡𝐚𝐧𝐠𝐞𝐝 📉 Gold and silver have been core holdings for me for years. As the rally extended and became more speculative, I trimmed aggressively, locking in substantial gains and building a meaningful cash position. Despite that, I still had decent exposure into the recent drop, which inevitably impacted performance. I do not think the metals story is suddenly over. That said, I am not comfortable adding here. My plan is to use any rebound to reduce further. I like precious metals structurally, just not at every price. Alongside this, I have continued to rotate toward European equities, remaining overweight Europe versus the US, and maintaining exposure to emerging markets. At current levels, crypto is also back on my radar. Overall, the portfolio is still up over 6% year to date, even after pulling back from around 12% last week, and remains higher than a week ago. This is the thirteenth consecutive profitable month. I am positive on the year ahead, but disciplined after such extreme market moves. $SILVER $GOLD $EWN (iShares MSCI Netherlands ETF) $EWG (iShares MSCI Germany ETF)

Not investment advice. The author may have financial interests in the mentioned instruments.

4 Mentioned

SILVER

GOLD

EWN

iShares MSCI Netherlands ETF

EWG

iShares MSCI Germany ETF

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