Gold at $3,000: Is the Fear Trade Driving a Mining Stock Revival?
Wednesday, April 30th 2025
When fear creeps into the market, money moves fast—and right now, it’s pouring into gold.
Gold has surged above the $3,000 per ounce mark for the first time in history. But this milestone isn’t just about shiny metal—it’s a signal that broader market anxiety is reaching a boiling point. And as investors scramble for safety, mining stocks are staging an explosive comeback.
A Market on Edge
The backdrop? A staggering $5 trillion has been wiped from the broader U.S. stock market. The trigger, according to John Feneck of the Feneck Commodities Report, could be traced to political rumblings and renewed recession fears.
“There’s a greater sense of urgency with Trump in this second term,” Feneck explained in a Kitco Mining interview. “He said the ‘R’ word—recession—and markets tanked the next Monday.”
That drop wasn’t minor. The Nasdaq plunged 3.8% in a single day—an event Feneck compared to the early tremors of the Great Depression. His advice? “If you’re still clinging to broad equities, talk to a financial advisor immediately.”
Gold Rally Ignites Mining Stocks
As investors exit high-risk assets, they’re flowing into gold and the companies that dig it up. Major ETFs are now flashing green after months of stagnation.
- GDX, which tracks large-cap gold miners, broke through the stubborn $42–43 resistance range and is now trading near $44.90. Feneck sees $50 and even $60 on the horizon within 12–18 months.
- GDXJ, focused on junior miners, has also surged. At $55, it may be short-term overbought, but its high volatility and leverage offer powerful upside. “You’ve got more torque in GDXJ than GDX,” Feneck noted.
And the kicker? “Most gold and silver stocks haven’t even moved yet,” Feneck said. “This is still early. The big gains are ahead.”
Generalist Investors Start to Circle
The mining sector has historically attracted niche investors, but this time, generalists are starting to take notice. With traditional assets underperforming and fear mounting, gold’s appeal is spreading far and wide.
“This is the kind of moment where serious wealth can be made,” Feneck emphasized. “We’re watching the early stages of a shift.”
M&A Makes a Comeback
With momentum building, M&A activity is heating up again.
- In Australia, Ramelius Resources is making waves with a AU$2.4 billion acquisition of Spartan Resources. While Australia remains attractive to retail investors, Feneck warns about bloated share structures. “I just can’t get behind companies with a billion-plus shares outstanding,” he said.
- Meanwhile, in North America, investor activism is making noise. Feneck praised VanEck for pushing back against Equinox Gold’s merger proposal with Calibre Mining, noting, “They have the voice and the size to lead in our sector—I’d like to see more of that.”
Copper’s Surprise Surge
Gold isn’t the only metal making moves. Copper is also catching fire after former President Trump floated a 25% tariff on imports.
In response, copper prices shot up 5.1% in a single day—a breakout Feneck described as unmissable. “You’ve got to buy that move.”
After disappointing closes in 2023 and 2024, copper seems to be shaking off its slump. “This year, it’s finally starting to behave like the bullish asset we’ve been waiting for,” said Feneck.
What’s the Takeaway?
Gold’s rally may be making headlines, but the real story is what happens next. With mining stocks breaking out, investor sentiment shifting, and base metals joining the rally, a broader commodities bull cycle could be forming.
Smart investors aren’t asking if they should pay attention—they’re asking how quickly they can position themselves.
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