2 Portfolio Powerplays in the Latest from Iran, China
 |
| By Bob Czeschin |
Two weeks ago, I said President Trump’s decapitation of the Maduro regime in Venezuela would:
- Lead to the collapse of Iran’s ruling mullahs,
- Keep Taiwan safe from invasion by Beijing and
- Send gold ballistic.
Thus far, all three appear to be on track according to the headlines.
To be clear, I am not celebrating the various upheavals dominating headlines.
The conflicts across the globe are impacting real lives daily, and that is important to remember. But there’s also no denying how these events can shake up the markets.
And in uncertain times, volatility like this can either propel you ahead … or pull you further from your financial goals.
My goal is to help you navigate whatever the markets throw your way. So, I would be remiss if I didn’t touch on them.
Especially since the latest developments in Iran and China not only reaffirm my bullish gold outlook.
But because they have revealed a second investable opportunity, as well.
So, let’s dive into what’s happening and what it could mean for your portfolio …
Iran: Mullahs May Follow Maduro’s Example
Geopolitical instability tends to remind people of the need for non-fiat wealth, like gold and Bitcoin (BTC, “A-”).
With Maduro still sitting in U.S. federal prison, the next leader facing a major shakeup is Iran’s Ayatollah.
In Tehran, Supreme Leader Khamenei is hiding in his underground bunker as foreign forces close in and domestic resistance escalates.
British Typhoon fighter jets and special forces units are on their way to join America’s Abraham Lincoln aircraft carrier battle group in waters near Iran.
Within the capital, Revolutionary Guard troops have found a very effective tactic against street protests: firing live ammunition into crowds armed only with banners and cellphone cameras.
Hospital emergency rooms soon reported large numbers of gunshot victims with entry wounds to their backs and the backs of their legs.
This is how the Guards put down popular rebellions that rocked Iran in 2009, 2017, 2019 and 2022.
But today’s protesters have three major advantages their predecessors did not.
First, they are more tech-savvy.
Since large gatherings make for excellent targets, protesters instead are conducting small-scale, coordinated, hit-and-run attacks.
To do this in the middle of an Internet blackout, clever programmers rely on Bluetooth. In a city as densely populated as Tehran, chances are you’re almost always going to be near enough to connect to one or two other Bluetooth-enabled cell phones.
So, they created special apps that make just about any Apple or Android handset a secure node for a low-profile, encrypted peer-to-peer communications network.
Those are conversations the regime cannot see or shut down.
Second, while protesters get creative, Iran’s military is struggling.
June’s 12-day war with Israel cut Iranian military power to historic lows …
- Some 30 senior commanders were killed.
- Half of Iran’s ballistic missiles were destroyed.
- As were 80% of air defenses.
- Along with Iran’s deeply buried nuclear weapons facilities, thanks to the U.S.’s “Midnight Hammer” air raid.
Finally, the protesters are more united than ever before.
Previous protests in Iran were sparked by grievances from smaller communities.
But this time? The hot issues fanning the flames impact nearly every Iranian.
Food prices are up 72% in a year.
The currency is down 60% in six months.
Motor oil is strictly rationed for civilian use … in major oil-producing country.
And the collapse of ancient aquifers made hundreds of square miles virtually uninhabitable and exacerbated an already severe water situation.
With motivators like these, the voices of protesters are shouting in harmony.
China: AI Advance Will Likely Slow Down
Training large AI models requires immense amounts of electricity. A single hyperscale data center can consume as much juice as a mid-sized city.
Multiply that by hundreds of facilities, and it becomes clear electricity — not chips — is the most serious bottleneck in the global AI race.
Beijing understands this.
That’s why the Chinese are building record numbers of coal plants, extending natural gas infrastructure and securing long-term oil contracts.
In other words, oil is a key, non-negotiable industrial input.
This is where Trump’s strategy for winning the AI arms race becomes clearer. Washington doesn’t need to outbuild Beijing in data centers.
It just needs to out-price and out-power them.
America has abundant domestic oil and gas reserves, expanding LNG exports and deep capital markets to finance new, energy-hungry infrastructure.
China, by contrast, is vulnerable. It imports about 70% of its oil consumption — much of it from politically unstable or sanctioned states.
Like Venezuela and Iran.
Disrupt those flows, and Beijing’s grand AI ambitions suddenly become a lot more costly, fragile and dependent on geopolitical goodwill.
Without the imports from Venezuela and Iran, China could be short roughly 13-16% of its daily oil needs as they currently are.
Forget about fueling AI data centers. If that oil can’t be sourced elsewhere — for a comparable cost — it wouldn’t surprise me to see fuel shortages for existing needs and supply chain disruptions.
Trump’s strategy is to slow China’s AI advancement by forcing Beijing spend more — and accept structural disadvantages — in the most important technological competition of the 21st century.
Investment Implications: Gold
Many things impact gold prices. Inflation. The dollar debasement trade. Jewelry demand. Recycling. War in Ukraine. Possible war in Iran.
So it’s unsurprising that 2025 — which saw many of these forces simultaneously — was gold’s best year since 1979.
And why 2026 is set to be even better.
In fact, Weiss Ratings resource expert Sean Brodrick recently readjusted his target for gold. He now believes it’ll hit $10,000!
If you don’t already have gold in your portfolio, it’s time to add some forthwith.
To keep your gold on the blockchain, you may consider the PAX Gold (PAXG) stablecoin. Rather than being pegged 1-to-1 to the dollar, this stablecoin is pegged to the cost of gold per ounce.
But there are opportunities in gold beyond just exposure. Ones that Sean has mined in his years of “boots-on-the-ground” experience.
To learn more about how he’s preparing for this gold rush, click here.
Investment Implications: AI
With China’s AI progress in question, U.S.-based AI companies could have a clearer path higher.
That doesn’t mean they’re all equally attractive as investments.
To make your research easier, Weiss Ratings Plus is a great tool to have in your kit. It helps you monitor in real time which AI stocks are most promising and which (if any) are best avoided.
Of course, no matter which AI play lands on top, all are competing for the same resources.
Copper — the backbone of electronic infrastructure — is a key pick-and-shovel play in the AI rush. And Ratings Plus can help you narrow down the right copper play for you, as well.
Best,
Bob Czeschin
