Editor’s Note
This article highlights the stark divide between official skepticism and bullish institutional forecasts in the commodity markets. The warning of a broader “commodity war” underscores the high-stakes geopolitical and economic tensions underlying current price movements.
John Feneck, portfolio manager at Feneck Consulting, issued a stark warning about the state of the precious metals market, highlighting a growing divergence between official rhetoric and institutional positioning. His comments come as the U.S. Treasury Department has recently characterized the gold rally as a “bubble,” while major banks like JPMorgan have simultaneously published price targets as high as $6,000 per ounce for the yellow metal.
Feneck argues this contradiction signals a deeper “commodity war” where control over physical resources is becoming a key geopolitical battleground. He points to aggressive central bank buying, particularly from Eastern nations, and sustained physical investment demand as fundamental drivers that official narratives are failing to suppress.
The analyst also highlighted specific opportunities within the sector, noting that while majors like Newmont and Barrick are well-positioned, the real leverage lies in select junior mining companies with high-grade projects in secure jurisdictions. He mentioned companies with exposure to critical minerals like tungsten and nickel as being particularly strategic in the current environment.
The commentary underscores the heightened volatility and strategic importance of the precious metals complex, moving beyond pure inflation-hedge narratives into themes of monetary sovereignty, supply chain security, and financial warfare.