The Fall of the House of Gold
Contributed Opinion

1. Tectonic Metals Inc. is a billboard sponsor of Streetwise Reports.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Tectonic Metals Inc. and Agnico Eagle Mines Ltd.  
3. Rick Mills: I, or members of my immediate household or family, own securities of: Tectonic Metals Inc. and Graphite One Inc. My company has a financial relationship with Graphite One Inc. I determined which companies would be included in this article based on my research and understanding of the sector.
4. Bob Moriarty: I, or members of my immediate household or family, own securities of: Tectonic Metals Inc. I determined which companies would be included in this article based on my research and understanding of the sector.
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Below is an interview by Rick Mills, the editor and publisher of Ahead of the Herd, with Bob Moriarty of 321Gold.

Rick Mills (RM): As someone with a military intelligence background from Vietnam, what's your take on recent Pentagon controversies? The Defense Secretary apparently has makeup facilities in his office, uses unsecured communications for classified discussions with family members, and appointed his blogger brother to a liaison position. Have you encountered anything comparable?

Bob Moriarty (BM): An apt description would be "embarrassing." From my perspective, we're witnessing the empire's twilight years. Historical patterns repeat — during Rome's decline in the 300-400s AD, leadership positions were filled with incompetents. Our recent presidential lineup demonstrates this pattern. The current administration surrounds itself with self-important figures. Installing cosmetic services within the Defense Department seems particularly bizarre.

RM: Leadership quality seems to deteriorate with each election cycle in North America.

Nuclear Diplomacy and Regional Conflicts

Regarding Iran's nuclear situation, Obama established the 2015 nuclear agreement, Trump withdrew in 2018, and imposed sanctions. Recent talks between the countries occurred last Wednesday, with more scheduled. Have you reconsidered your prediction about potential military action by the U.S. and Israel against Iran?

BM: The situation is straightforward. Netanyahu claimed in 1992 that Iran was near nuclear capability. Trump canceled the agreement preventing Iranian nuclear weapons development, and now argues that attacking is necessary to prevent them from developing such weapons. Meanwhile, his own intelligence director recently confirmed what 18 other American intelligence agencies report — Iran has no active nuclear weapons program.

Confronting superior firepower unprepared guarantees defeat. Israel has repeatedly threatened Iran, while Trump attempts to please multiple constituencies. He demands Iran abandon all defense capabilities to eliminate a non-existent nuclear program — an unreasonable expectation.

Two factors should prevent American and Israeli military action: petroleum prices would skyrocket as the Strait of Hormuz closes, and Iran possesses hypersonic missiles capable of devastating Israeli territory.

RM: There's been significant pushback when discussing Israel's Gaza campaign — critics are instantly labeled anti-Israeli or antisemitic. Free discussion should be permitted. The continued bombing of civilians, hoping to eliminate militant targets, seems counterproductive. The civilian-to-combatant casualty ratio creates more extremists with each incident. This approach won't break the cycle.

Trump recently suggested Russia's willingness to halt expansion short of conquering all of Ukraine represents a "significant concession." Does this indicate America abandoning Ukrainian support?

BM: Effectively, yes. Trump now recognizes that Western powers initiated this conflict, which ends either with Ukraine's elimination or Western withdrawal.

Recent developments are alarming — France's president discussing nuclear protection for Europe, Germany's chancellor promoting long-range strikes against Russia, Britain offering limited troop deployment. Something unreported elsewhere that I can document: military personnel from France, Germany, Canada, America, and Britain are currently dying in Ukraine. This isn't merely Ukraine versus Russia but an American-initiated conflict that continues until America terminates it.

President Trump could earn peace recognition immediately by informing Ukrainian leadership the conflict ends now, then telling Netanyahu American financial support for "stupidity" has ceased. America enables these situations through unlimited backing. American policy, not Israeli actions, created these problems. Both conflicts end when American funding stops.

RM: Agreed. Trump presently has leverage to negotiate with Putin — establish current positions as permanent boundaries.

BM: Putin has no incentive to negotiate from a winning position. Russian forces eliminate hundreds or thousands of Ukrainian soldiers daily. Western powers broke promises from December 2021 security guarantees, the Minsk-2 agreement, and NATO's 1990 pledge against eastward expansion. America, Germany, Britain, and Ukraine failed to honor commitments. Why should Putin halt his successful campaign?

RM: Despite his battlefield success, economic considerations might sway Putin. Removing sanctions, encouraging corporate reinvestment, and mineral development partnerships with Trump might motivate a settlement preserving current territorial gains, preventing Ukrainian NATO membership, while establishing mutually beneficial economic projects.

BM: Trump suggesting American management of nuclear facilities equals the absurdity of transforming Gaza into vacation properties. Russia consistently prioritized secure borders. This isn't about energy resources — European nations purchase more Russian energy now than before 2022.

RM: Sanctions against Russia and Iran seem ineffective, particularly regarding commodities, due to circumvention methods.

BM: Precisely, sanctions fail. I identified them as European economic suicide immediately after hostilities began. The German chancellor authorized the Nordstream pipeline destruction, damaging European interests by $30 billion while claiming to harm Russia. Instead, they devastated their own economy.

RM: Interestingly, returning that power plant represents virtually the only condition imposed on Russia in recent proposals. This suggests Trump still desires control.

BM: Russia has no motivation to relinquish it.

RM: Russia might concede certain points for sanctions relief and economic partnerships. Their situation isn't advantageous either. They face severe interest rates exceeding 20%, food scarcity issues, inflation above 10%, and population exodus, avoiding conscription. Their economy struggles significantly, they've depleted Cold War-era military stockpiles, and increasingly rely on conscripts rather than professional forces or prisoners. North Korean personnel have increased, and Chinese representatives have appeared on battlefields. Russia resembles North Korea, sustained by commodity exports.

BM: Ukraine should prioritize peace negotiations. Reports suggest between 1.2-1.5 million Ukrainian military casualties, significantly higher than America's 425,000 losses during five years of World War II. The conflict devastates Ukraine.

Regarding Ukraine's peace commitment, their recent treatment of a Russian general demonstrates their position. Meanwhile, Zelensky and associates siphon foreign assistance funds. Post-conflict investigations will reveal substantial percentages of aid disappeared into oligarchs' accounts.

RM: Ukraine cannot achieve victory and should salvage remaining assets. Trump's approach resembles protection rackets — damage before offering terms.

Let's discuss India-Pakistan tensions.

BM: Those nations approach potential conflict, both possess nuclear weapons, and might employ them. Global accountability for aggressive actions seems absent.

Similar patterns appear in Gaza, the West Bank, Syria, and Iran. Ukrainian forces just killed a Russian general while Trump claims to pursue peace. Does this combination of Ukrainian assassination activities and peace rhetoric make sense?

RM: Both countries maintain nuclear arsenals. The current flare-up follows militant actions killing 26 people in Kashmir.

India blames Pakistan, resistance fighters claim responsibility, while India attributes this to Pakistani military-supported militants. They've disputed the Himalayan territory in Kashmir for generations.

Water access represents their primary dispute. India controls Pakistan's water supply and recently threatened restrictions, which Pakistan considers a justification for warfare. Conflict appears imminent without mutual support systems.

BM: India has already restricted Pakistan's freshwater access, prompting Pakistan's declaration of a potential military response. Imminent air strikes or nuclear exchanges remain possible. Global destabilization continues while Trump's administration exacerbates conditions without prospects for improvement.

Economic Rivalry: US-China Trade Relations

RM: Regarding US-China trade disputes, Trump claims productive discussions while China denies any communication or agreements.

Economic relationships between these nations are significant - together they represent 43% of global GDP and produced 48% of global manufacturing output last year. China holds approximately $760 billion in American treasury bonds, making it the second-largest foreign creditor after Japan.

Complete economic separation seems implausible. China maintains several advantages: demonstrated population resilience during pandemic restrictions, alternative trading partners beyond America, and established diversification efforts reducing American dependence. China's critical mineral dominance provides additional leverage.

Recent developments suggest that Trump is facing setbacks in this economic confrontation. Your perspective?

BM: Absolutely. An overlooked factor — Chinese soybean purchases from America were essentially goodwill gestures. Brazil leads global soybean production, offering China alternative supplies. Without military action, China could bankrupt thousands of American farmers simply by redirecting purchases.

Agricultural planting follows strict seasonal windows — current decisions affect this year's planting. Farmers don't decide when to plant in January or July — preparations begin months earlier. China has effectively canceled billions in soybean orders.

Their actions severely impact American industry — restricting exports of tungsten, antimony, various minerals, rare earth elements, and specialized magnets. These limitations devastate American manufacturing capabilities.

Your question about tariff conflicts deserves consideration — who ultimately prevails in any conflict? Having experienced warfare personally, I'd suggest differently.

RM: Nobody wins; only survivors remain to rebuild.

BM: Precisely, minimal damage becomes the objective. World War II devastated Europe extensively. During my first European visit while on leave from Vietnam in 1969, French citizens still relied on bicycles 25 years after hostilities ended.

Conflict inevitably harms all participants, and there is a powerful motivation to avoid initiating hostilities. Trump's outsized self-importance leads him to believe presidential authority guarantees success, but power has limitations he's discovering.

I recently reviewed a significant analysis suggesting bond markets now control global geopolitics. Trump's actions are intended to reduce interest rates instead of increasing them. Tariffs function as taxes — they reduce economic activity.

Has American tariff policy been misguided for 75 years? Certainly. Do foreign nations exploit America? Only through systems that America established. Either global cooperation prevails or universal failure results. Declaring economic warfare against your primary trading partner defies comprehension, comparable to opening borders completely with extensive financial incentives for all arrivals.

RM: Canada follows similar policies with higher benefits and healthcare coverage.

BM: Tariff rationalization makes sense, but replacing income taxes with tariffs remains impossible. When tariffs provided primary government revenue, the government represented 3% of the economy versus today's 25%. Income taxes cannot be replaced through tariff systems.

RM: The government efficiency initiative headed by Musk lacks substance. He admits maximum savings of $150 billion total, which doesn't offset revenue losses from reduced tax enforcement staffing.

BM: Another overlooked metric — comparing final Biden administration spending versus initial Trump administration expenditures reveals troubling patterns.

RM: Interesting comparison, though Trump largely operates under Biden's established budget during his first year.

BM: We're exceeding Biden's budget significantly. Trump increased defense spending by 11% beyond Biden's allocations. Our financial situation has deteriorated since Biden's administration, though Biden-era spending contained egregious corruption. Specific amounts matter less than fundamental reality — America faces insolvency.

Everyone with basic economic understanding recognizes America cannot meet $200 trillion in unfunded obligations over five decades. Musk acknowledged Social Security operates as a Ponzi scheme — a reality Congress accepts but considers untouchable. Resolving these issues requires civil unrest, revolution, or catastrophic military defeat to prompt actions we should have taken 50 years ago. Judy Shelton's brilliance would benefit the Federal Reserve tremendously.

Investment Ideas

RM: Let's discuss promising gold investments.

Regarding your upcoming recommendation, I previously advised purchasing three specific stocks during winter for exceptional returns the following year —  Underworld, Atac and Kaminak during the White Gold Area Play. Your current recommendation shares connections with Kaminak's team.

BM: My recommendation is Tectonic Metals Inc. (TECT:TSX.V; TETOF:OTCQB; T15B:FSE). They control significant Alaskan territory with historical placer gold production exceeding several million ounces. Their drilling program has achieved 100% success rates, discovering gold in every attempt.

A relevant market observation from Rambus Chartology: "Presently, there are just a few micro-caps that are starting to show some light, which is normal at the beginning of a bull market. In previous strong bull markets in the PM complex when the microcaps come to life, it's an expression that went something like this.

Microcaps are like listening to popcorn popping, first one kernel pops, then another, until the popping is finished. Most of the kernels popped, but there were always a few kernels that didn't. And that will be pretty much how the microcaps will trade when their time comes, which is why you need a basket of them. The ones that pop will more than make up for the ones that don't. This is where you get the five and 10-baggers."

For months, I've explained junior resource underperformance resulted from capital flowing into broader equities and cryptocurrencies — a pattern now reversing. Major mining companies like Newmont Corp. (NEM:NYSE) and Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE) show upward momentum, followed by mid-tier producers, with juniors showing early recovery signs.

TECT controls the extensive Flat Gold Project with drilling resuming next month. Their primary Chicken Mountain target shows 86 successful drill holes, with 46 ending in mineralization. Their current $5 million fundraising fully finances this year's exploration. Recently valued at a market capitalization of nearly $25 million, this opportunity appears exceptional.

Trump's January 20th executive order, "Unleashing Alaska's Extraordinary Resource Potential," supports mining development. Wealth creation fundamentally derives from three sources: mining, manufacturing, or agriculture. Having outsourced manufacturing to China and damaged agricultural markets through tariffs, mining represents America's primary remaining wealth generation mechanism. Expect increased mining sector support under this administration. TECT remains attractively priced with Crescat Capital's backing. Alaskan and Yukon projects generally should perform well in the coming months.

RM: My recommendation also targets Alaska's critical mineral sector: Graphite One Inc. (GPH:TSX.V; GPHOF:OTCQX)

Aluminum and graphite represent the most crucial military metals. Graphite remains essential for modern economies, yet America lacks domestic supply, depending entirely on Chinese sources.

Graphite One offers comprehensive solutions — mining, manufacturing, and recycling capabilities domestically. Their mine near Nome, Alaska complements manufacturing facilities in Ohio — previously represented by now-Vice President Vance.

Within 2.5 years, their manufacturing plant should process 25,000 tonnes of synthetic graphite into finished products, planning six additional production modules thereafter. Initial module revenues are projected at US$200 million annually, generating substantial early cash flow.

Their exceptional high-grade graphite deposit ranks among the world's largest, capable of supplying American requirements for generations, with surplus for strategic reserves.

They're establishing domestic capabilities in a market currently dominated by Chinese imports. Providing American graphite supply security represents tremendous strategic value.

Their feasibility study indicates a highly viable mining operation targeting a 2030 production start, with companion studies demonstrating manufacturing profitability in Ohio. At Canadian $0.95 per share, significant growth potential exists given the security of supply imperative.

BM: My previous graphite sector research confirms your assessment. Graphite serves hundreds of applications as a genuinely critical mineral, positioning Graphite One ideally.

RM: Let's continue our discussion next week.

BM: Looking forward to it.

You can view more from Rick and Bob at Ahead of the Herd and 321Gold.