By: Bruce Tatters CEO, Red Cloud Securities Inc.
PARADIGM SHIFT:
MIDDLE INNINGS Gold and Silver Commodity Paradigm Shift
In our Fall 2025 mining conference article titled Precious Metals Paradigm Shift, we noted that gold prices had soared above US$4,000/oz for the first time. We highlighted that senior producer stocks had doubled, and junior producers, developers, and explorers had seen multiples of these gains. Silver, which trailed gold earlier in 2025, has surged ahead, with both commodity prices and equities outperforming gold. Financing markets for junior precious metals have been wide open since mid-2025, with most projects raising the money required to advance them. We believed then and still believe now—with precious metals prices near $5,000/oz for gold and above $75/oz for silver—that despite these impressive returns, junior resource stocks remain the best opportunity for returns in the sector. Many are concerned that precious metal prices have peaked and it’s time to move on to other sectors. Although trying to call ultimate market tops in any asset class is extremely challenging, it very likely misses the point of what investors should focus on. Rather, it is important to highlight that we are at commodity price levels where previously uneconomic projects have become highly profitable. Senior producers, who have been stingy with their capital on exploration and development, find themselves largely cash-rich beyond their dreams and project-poor (in terms of growth profile). We continue to emphasize that junior producers, developers, and explorers offer the greatest opportunities as these majors’ strategic initiatives shift heavily toward mergers and acquisitions of these junior companies.
Critical Minerals and Base Metals
Throughout 2025 and into early 2026, the divergences within the critical minerals and base metals sectors remain acute. Rare earths continue to stand out due to trade tensions between the U.S. and China. China’s use of the threat of rationing rare earth supplies lingers in the market’s conscience. This has exposed global dependency on China, which continues to make rare earth stories a crucial portion of the junior resource space. In the base metals sector, we remain steadfast in our belief that the world’s perception of copper scarcity will intensify. Decades of underinvestment and dependence upon maturing copper mines exemplify the challenge for the industry in growing its output. Meanwhile, the growing power demands of AI and ongoing electrification trends underpin an outlook of well-above-trend consumption growth. This is the stuff of super cycles that markets become more aware of each day as the impending reckoning approaches. Outside of copper, general metal requirements look very constructive as well. A major announced capex renaissance in the US (led by AI infrastructure builds) which spans many industries will lead to significant increases in consumption across the broader commodity complex. No metal will be left behind for long!
Uranium continues to warrant close attention, driven by the incredible power constraints facing all nations. A nuclear energy renaissance has just started to play out, with the world in the very early innings of this realization. New nuclear generation technologies, including SMRs, are the focus of private equity and technology entrepreneurs. This shift will dramatically alter timelines for this renaissance away from the utility timeline the industry has been accustomed to over the last 40 years. While this excitement has yet to fully reach uranium developers and explorers, it will, and the uranium space will garner far more attention than it currently receives.
Red Cloud’s Commitment to the Sector
Red Cloud remains dedicated to the junior mining sector, which we see as the backbone of supply growth across these markets. We are committed to supporting junior explorers, developers, and producers through innovative products and services. Our team continues to grow, expanding our distribution network, enhancing research capabilities, and introducing new services to better serve our issuer partners and investor clients. We hope you enjoy the conference. The Red Cloud team works tirelessly to make each event better than the last and is here to assist you in any way we can.
