Recent military actions ordered by President Donald Trump in Venezuela have ignited significant movements within the commodities market, with analysts anticipating the beginning of a new 'supercycle' that could usher in a lengthy period of growth and elevated prices.
John Velis, a macroeconomic strategist based in New York at BNY, has drawn parallels between the current commodities markets and the supercycle experienced in the early 2000s. He attributes this renewed rise in hard-asset prices to a convergence of multiple catalysts, including heightened geopolitical risks, a broad expansion in global money supply, and the prospect of more accommodative monetary policies by central banks worldwide. Alongside these elements, Velis points to the substantial increase in capital expenditures related to artificial intelligence and technology sectors as a significant driver stimulating demand for various commodities.
Velis emphasized the noticeable gains hard assets recorded since the start of the year. Beginning with a strong rally in precious metals the previous year, this momentum has now extended into industrial metals. Such growth might further broaden to encompass the energy sector as confidence in global economic expansion for 2026 picks up.
According to his analysis, current valuations suggest hard assets are undervalued relative to equities, providing compelling entry opportunities for investors. The anticipated increase in industrial demand further enhances the outlook for these tangible assets.
These developments follow earlier expert recommendations advocating for strategic allocations in commodities. For instance, Bank of America urged investors to maintain positions in gold, consider uranium investments, and acquire copper ahead of a full market repricing. Their advice stems from expectations of intensifying U.S. industrial policies, potential currency depreciation of the U.S. dollar, ongoing geopolitical tensions, and uncertainties regarding trade tariffs.
Commodity specialist Lawson Winder has highlighted specific companies positioned to benefit from this commodities upswing, naming Agnico Eagle Mines Ltd. (NYSE: AEM), Cameco Corp. (NYSE: CCJ), and Freeport-McMoRan Inc. (NYSE: FCX) as top favorites. Meanwhile, finance expert Danny Moses projected that gold prices could potentially double over the coming years, a trajectory he believes has already commenced. Moses notes that gold and silver have outperformed most asset classes in 2025, suggesting a transition for precious metals from their traditional hedging role toward becoming leading assets in investment portfolios.
Supporting this outlook, Goldman Sachs has issued a cautionary note regarding ongoing extreme volatility in the silver market. They attribute this instability to a tightly constrained physical supply within London, shifts in trade routes towards the United States, and mounting geopolitical frictions that continue to unsettle markets.
As these dynamics unfold, an increased focus on the resilience and performance of hard assets versus equities remains central to investment considerations in the commodities landscape.