Gerardo Del Real,
Editor
Jan. 6, 2025
This is your Resource Stock Digest editor Gerardo Del Real here with some Monday coffee talking points to kick off the first full trading week of 2025.
Let's get right into it.
I said, last week, that I thought 2025 was going to bring with it a lot of volatility… and we’re certainly seeing that out of the gate.
Justin Trudeau just announced he is resigning as prime minister of Canada after a decade-long run. I guess he’s had enough! The currency markets are reacting with the Canadian dollar up around 1% at last check, which is significant.
The dollar index (DXY) remains firmly above 108 after a brief run above 109.
And despite the early chaos, gold remains above US$2,640 per ounce with silver breaching the US$30/oz level once again.
As I’ve been saying all along, I believe 2025 is going to be a great year for precious metals. I see silver breaking out and I think gold continues to make new all-time highs.
With the dollar index in that 108 to 109 range, and to have gold still holding these levels, it absolutely bodes well for a tremendous year in the precious metals space.
Importantly, we should start seeing some of that upward momentum trickle down to the junior explorers, which, of course, is my bread and butter.
And that includes copper as well, which is trending higher to start the year.
A lot of what I expect will be a great year is going to be brought forth by a Chinese bond market that not too many people are paying attention to — but should be. What we’re seeing already is a Chinese bond market that’s essentially collapsing.
And so what I expect out of China are two things:
One, is major Chinese stimulus aimed at propping up the market, the real estate sector, and overall Chinese sentiment. And two, for the Chinese government to continue stockpiling gold, which they’ve done brilliantly the last couple of years while Western nations, such as our neighbors to the north, became net sellers.
What’s really going to be interesting is when Canada, as well as some of the BRICs, start increasing their gold purchases to keep pace with what China — the biggest of the BRICs — is doing.
Or put another way… if you think gold’s run over the last couple of years has been impressive — just wait, folks!
So, plenty to watch this week. I’m expecting a major uptick in news flow from our resource companies across the board as winter 2025 drill programs get underway and as spring/summer programs are announced.
I hope everyone enjoyed the holidays. I, for one, am excited to be back at it, and I’m really looking forward to the next few quarters.
I think they'll be exciting ones. Yet, as I have been forewarning… they’re absolutely going to be ripe with volatility.
Let’s get it!
Gerardo Del Real
Editor, Resource Stock Digest