Couldn't invest in gold? This metal might be safe bet
What's the story
The recent surge in precious metal prices has left many investors feeling the heat of FOMO (fear of missing out). Silver prices have skyrocketed by over 200% in a year, while gold has gained nearly 95%. This rapid growth has pushed prices to new highs, making it difficult for some retail and small investors to gain direct exposure. Now, analysts are looking at copper as a potential investment opportunity.
Investment shift
The next opportunity
Heena Naik, Research Analyst - Commodities at Angel One, said copper is likely to continue its bullish trend in 2026. This comes as tariffs imposed by US and major mine outages led to a 50% surge in domestic spot market prices over the last year.
Tariff impact
US tariffs and market dynamics
In July 2025, US President Donald Trump announced universal 50% tariffs on imports of 51 types of semi-finished copper products, excluding raw copper materials. Goldman Sachs Research predicts a 15% tariff on refined copper in mid-2026. This has already prompted many buyers to stockpile copper in the US ahead of the expected import tax, creating expectations of temporary scarcity outside America.
Supply issues
Mine outages and supply constraints
Three mine outages in 2025 have contributed to the bull run in copper prices. Underinvestment, declining ore grades in Chile and Peru, and project delays have also tightened the market.
Demand surge
Copper demand surges amid global electrification
Despite supply woes, copper demand continues to boom due to its role in global electrification, energy transition, and also infrastructure spending. Harshal Dasani of INVasset PMS says copper demand growth is now structurally higher than in the last cycle. He believes that while copper prices have already moved significantly, the cycle doesn't seem stretched yet.
Price forecast
Copper price projections and potential risks
Naik from Angel One predicts that speculative peaks in copper prices are likely to continue due to US economic growth, AI spending, and stockpiling. She expects MCX Copper Feb Futures to rise toward ₹1,365 per kg in the near term. However, she also warns that if tariff threats fade and trade routes normalize, excess inventories could flood the market quickly. This may cause copper prices to fall just as fast as they have risen.