Editor's note: All signs are pointing to a commodities bull market that's just getting started. In fact, this could be one of the best setups for resource investors in decades.
In today's Weekend Edition, we're taking a break from our usual fare to share this piece from our friend Nick Hodge. In it, he breaks down the market signals you should be listening to right now – and explains why the commodities market could be preparing to rocket even higher from here.
Want to know where the "smart money" is really headed?
Stop listening to what people say and start watching what they do. That's how I know this commodities bull market is real... and just getting started.
Gold is breaking out. Silver is finally following. Copper is warning of a coming crisis. And governments around the world are no longer pretending that they can meet their strategic goals without getting involved in mining.
This isn't a short-term phase. It's a major structural shift.
If you're watching the charts, politics, and supply chain fractures like I am, then you know exactly what's happening...
The market is finally waking up to how hard it is to secure the materials the modern world depends on.
Let me walk you through what I'm seeing – and why I believe this is one of the best setups for resource investors in a generation...
Silver's Breakout
For months, silver prices were stuck. They couldn't get through resistance around $24 or $25 per ounce. But once silver finally cracked $26 per ounce, it moved fast.
Silver is more affordable, more volatile, and more reactive than gold. When it runs, it runs hard. And this latest breakout is a big signal. Take a look...
Retail investors are coming back. But this isn't WallStreetBets pushing meme stocks higher... This is hard money moving into real assets.
I've seen silver lag gold before. But once it starts catching up, that confirms the metals bull market is real. And that's exactly what we're seeing now.
Folks Are Loading Up on Gold
Gold prices flirted with $4,400 an ounce last month. I expect we're headed to $5,000 gold, and I'm not alone.
Morgan Stanley just issued a report recommending investors allocate up to 20% of their portfolios to gold. When big banks start saying that, it's because their models are showing what I already see: Gold isn't reacting to traditional metrics anymore.
People used to say gold only goes up when the dollar goes down... or when interest rates fall... or when inflation spikes. None of that applies right now. Gold is breaking out despite high rates and despite a strong dollar.
Gold is an insurance policy. And right now, people are buying insurance, not against inflation or rate cuts, but against a system that feels increasingly unstable.
When you see central banks like China loading up, it's not because they want to flip gold for a quick profit. It's because they don't want to be caught holding the bag when the music stops.
Gold is up more than 50% this year alone. That's the start of a major re-pricing.
Copper Supply Is Tightening
If you want to understand how tight the supply side of commodities is, look at what just happened in copper.
Freeport-McMoRan (FCX), one of the largest copper producers in the world, just had to shut down its massive Grasberg mine because of a mudslide. That single event took about 3% of the global copper supply offline overnight.
Think about that. One mudslide, one mine, 3% of the global supply – gone.
Then add in the labor issues, permitting delays, and production cuts elsewhere – like what we saw with Anglo American (NGLOY) slashing copper output. The market didn't take long to react. Copper moved from $4.20 per pound to more than $4.40 per pound in a matter of days, and it has continued higher, trading north of $5 per pound today.
People forget how tight this market already is. Global copper inventories are near all-time lows. And demand is only going up. Copper is in everything – from electric vehicles to grid expansion to AI data centers to renewable energy.
You can't have electrification without copper. You can't build a modern economy without copper. And yet the world is acting like it can just conjure new mines out of thin air.
That's not how this works. It takes seven to 10 years to bring a copper mine online. And that's if everything goes smoothly – which it almost never does.
I've invested in copper for years, and I know how long it takes to build something real. And when supply gets tight – like it is now – prices can move quickly. Copper just confirmed that.
Resource Nationalism Is the New Reality
The other big shift I'm watching – and that every resource investor should pay attention to – is the rise of resource nationalism.
For years, governments stayed hands-off, letting the markets figure it out.
That's over.
We're now watching the U.S. and other governments actively take equity stakes in mining projects. They're funding feasibility studies... giving out grants and loans... identifying "critical minerals"... and making lists of what they need to secure.
It doesn't matter who's in the White House. President Donald Trump and former President Joe Biden may not agree on much, but they both agree that the U.S. needs to control its own supply chains.
We've seen support for lithium, uranium, copper, nickel, antimony, rare earths, and more.
Governments are realizing that without control over these materials, they don't have sovereignty. They can't defend themselves. They can't build the future they've promised.
That's not a trend that fades with an election. It's a structural shift.
And for investors who understand how to read those moves – who know which companies are in the right place at the right time – it's a massive opportunity.
People ask me all the time: Is now the time to buy gold? Is copper too high? Has silver missed the move?
Here's what I tell them... I don't buy narratives. I buy truth. And the truth is, we're in the early innings of a commodities bull market. And it's being driven by real-world fundamentals – not cheap money or stimulus checks.
Mining is hard. Supply is constrained. Governments are getting involved. And the market is responding. We've already seen gold, silver, and copper break out. Resource nationalism is reshaping how the game is played.
If you've been waiting for clarity, this is it. The world is changing. And the market is trying to tell you something. The question is, are you listening?
Regards,
Nick Hodge
Editor's note: Washington insiders are racing to back a handful of unknown stocks as our last line of defense against a crisis that could erupt in just 60 days. Already, 28 of these stocks have doubled – and at least 10 others are already up 500% or more. On Tuesday, November 18, a legendary investor will reveal exactly what's happening... and where to move your money to make sure you don't miss it.
