Gerardo Del Real,
Editor
Dec. 30, 2024
This is your Resource Stock Digest editor Gerardo Del Real here with some Monday coffee talking points as we tie a bow on 2024.
I hope everyone had a safe and fun Christmas holiday surrounded by loved ones.
What am I watching as we head into 2025?
For one, I’m looking forward to having tax-loss selling season behind us. And with that in the rearview, I’m expecting a solid rebound going into the second week of the new year. I don’t think it’ll be an across-the-board rebound as fears of a global slowdown are now starting to show up in the market as we head fearlessly into a second Trump administration.
I’ll be curious to see if it's just an illiquid market that's looking to reposition here before year-end or if that’s going to be part of a broader theme for 2025.
It certainly doesn't help that President-elect Donald Trump and his administration are warning of a 1929-style depression that could potentially arise out of the debt spiral that, let's be clear, both sides of the aisle have created for many, many decades.
It also doesn’t help that the incoming Trump administration, despite campaign promises (imagine that!), is now saying that once prices rise and inflation ticks up, it's kind of hard to bring it back down.
We’ll see if that’s just talk or part of a more persistent non-transitory theme.
Turning to the metals, we currently have gold clinging on to the US$2,600 per ounce support level. Likewise, silver is attempting to hold the US$29/oz level. Those key support levels may prove difficult to hold over the near-term with a dollar index that doesn’t look like it wants to budge from its perch above 108.
With fears of a global slowdown, we also have copper dipping below US$4 per pound.
I expect Chinese stimulus to continue to be rampant in 2025. And hence, I am anticipating a rebound in copper demand as it relates to China, which, of course, is the most consequential economy as it relates to commodity demand.
Turning to digital assets, the pullback in Bitcoin has been real… now below US$92K per coin after surging above US$106K just a couple of short weeks ago.
I’m curious to see what our in-house crypto expert Mr. Chris Curl has to say about that. I do know that Chris is not hyper-BTC focused and that he has his eye on a number of smaller, lesser-known crypto opportunities that he believes have quadruple-digit potential regardless of Bitcoin’s wild price gyrations.
Well, that’s a wrap for 2024. Wishing everyone a Happy New Year! It's going to be a profitable 2025, folks, but it's also going to be one filled with volatility… even more so than what we saw in 2024.
Have fun, be safe, and we’ll see you all in the new year.
Let’s get it!
Gerardo Del Real
Editor, Resource Stock Digest