Gerardo Del Real,
Editor
July 30, 2025
On Fed decision day, I normally wait until after the decision is announced to put thought to paper. Not the case today because regardless of what the Fed does, there are trends in motion that the Fed will only likely accelerate and trends we will profit from.
I recently wrote a report titled “The Age of Exploration.”
The purpose of the report was to provide a short intro and then feature three new ideas on how to gain excellent exposure in silver, gold, and uranium stocks.
I won’t share the three picks here. For that you can subscribe here. But I will share the brief intro because regardless of what the Fed does or doesn’t do, my intro will be as true before the decision as it will be after.
For the past 17 years, I’ve seen capital destruction in the junior resource space that ironically is now leading to the greatest setup in the commodities space I've ever seen.
Let me explain. Once upon a time, over a decade ago, we had a record gold price near the $1,700 level. What followed was some of the most irresponsible allocation of capital I’ve ever seen. Companies were chasing marginal deposits and paying extreme premiums for those projects.
Projects that were not going to work.
M&A picked up, exploration slowed down, and eventually the marginal projects companies paid billions for were shelved. That led to companies bringing in new boards of directors tasked with fiscal prudence.
That prudence led to exploration budgets that were a fraction of what they used to be.
It didn’t just happen in the gold space. Copper, uranium, lithium — you name it. The next several years yielded fewer and fewer discoveries. All this while, slowly but surely, stimulus around the world and artificially depressed interest rates led to more demand for the stuff you need to make the stuff.
Fast forward to 2025 and the misallocation of capital that led to miniscule exploration budgets has now resulted in structural deficits that are here to stay with us for years.
That means more demand than supply, which means higher prices.
And that means the next several years will be some of the most profitable years we’ve seen in the resource space.
It’s already happening. I won’t go into how successful my and Nick Hodge’s private placement service, Private Placement Intel, has been or how many triple and quadruple digit wins we have on the books. But I will say it’s early in the game and there’s a lot of gains left to be had.
So whatever the Fed does won’t bring down the deficits or stop the wars or stop the stupidity from our elected officials… but that doesn’t mean we can’t profit from the clear trends that have been set.
Let’s get it!
Gerardo Del Real
Editor, Daily Profit Cycle