Copper: The Next Big Bet in 2026
After a record-breaking rally by precious metals in 2025, copper is seen as the next big bet by commodity traders for 2026. The widely-used industrial metal, which is used in power, construction, and manufacturing, has gained 3.2% last week and is up more than 35% in 2025.
Comparisons with Silver
Market analysts are comparing copper with silver after the white metal’s rally far outperformed gold’s historic bull run in 2025. Silver has rallied 138% so far this year, while gold has surged more than 68% in its biggest annual rise since 1979, fuelled by strong global central bank buying, safe-haven flows, and lower interest rates.
Supply Constraints and Demand Drivers
Rakesh Bansal, founder of RKB Ventures, believes that supply constraints and demand from AI, electrification, EVs, and the energy transition could push copper into a fresh multi-year run. Copper prices are expected to rally beyond imagination, driven by these factors.
According to analysts, the price swings in base metals are becoming increasingly exaggerated with thin liquidity, leaving the complex vulnerable to abrupt moves into year-end. This volatility can be an opportunity for Indian investors to invest in commodities like copper.
Goldman Sachs Forecast
Global brokerage Goldman Sachs has forecast the price of copper to consolidate in 2026 and average $11,400 per metric ton under its base case that uncertainty over tariffs will linger until a possible announcement in mid-2026 that the US will implement tariffs on refined copper in 2027.
The investment bank expects copper to outperform aluminium in 2026 as China’s overseas push for critical metals boosts aluminium production. The benchmark three-month copper on the London Metal Exchange last hit a record high of $11,952 earlier this month.
Long-Term Outlook
Despite the rally in copper prices and the expected consolidation in 2026, Goldman Sachs remains bullish on the metal in the long run. Electrification, which drives nearly half of copper demand, implies a structurally strong demand growth, and copper mine supply faces unique constraints.
Indian investors can consider investing in copper as a long-term strategy, given its potential for growth and the increasing demand from emerging technologies like AI and EVs.
Conclusion
In conclusion, copper is poised for a massive price surge in 2026, driven by supply constraints and demand from AI, electrification, and energy transition. Indian investors can consider investing in copper as a long-term strategy, given its potential for growth and the increasing demand from emerging technologies.