Summary
The week has been marked by significant political controversies, economic concerns, and potential shifts in investment strategies, particularly in the context of presidential pardons, foreign relations, and the gold market amidst ongoing crises.
Global Economic Trends
China has been stockpiling hundreds/thousands of tons of gold since 2022 as a hedge against potential financial collapse of world’s stock/bond markets and US dollar.
Gold made an all-time weekly closing high of $2779 on the February futures contract on January 26, 2025, with gold 10 times higher than 25 years ago.
Junior resource stocks in Toronto and Vancouver are the cheapest ever relative to gold, presenting an exceptional opportunity for investors.
Political and Legal Developments
Presidential pardons by Biden and Trump set to create legal challenges for years, potentially reopening pardoned individuals to criminal prosecution if Supreme Court rules pardons invalid.
California’s Southern California fires exposed government incompetence despite high taxes, with DEI hiring practices leading to unqualified officials and rebuilding efforts taking 5-10 years.
Investment Insights
Cryptocurrencies are seen as speculative electronic Beanie Babies with 99% speculation, 1% utility, risking a potential trillion-dollar crash.
Sitka Gold (TSX-V:SIG) reported extraordinary gold intercepts in 2024, including a 678m intercept grading 1.04g/t with high-grade intervals up to 17g/t.
Lion One Metals (TSX-V:LIO) has an alkaline gold deposit similar to a 40M oz mine nearby, with potential for giant success despite funding challenges.
Market Strategies
Tax loss selling season at year-end presents exceptional opportunities in junior resource stocks.
US-China relations under a potential Trump 2.0 presidency set to shape the global economy in 2025.
A potential cryptocurrency crash could redirect hot money into resource stocks, potentially benefiting the sector.