Not Gold or Silver, Copper May Deliver Big Returns in 2026: Here’s Why Investors Are Watching It Closely
Copper is emerging as one of the most promising commodities for investors looking beyond traditional safe havens like gold and silver. After delivering an impressive rally in 2025, market experts believe copper could continue to offer strong return potential in 2026, driven by tight supply, rising global demand, and long-term structural changes in the global economy.
Copper Prices Surge Sharply in 2025
Copper prices witnessed a remarkable rise throughout 2025. According to industry estimates, copper climbed close to $13,000 per tonne during the year. On the US-based COMEX exchange, copper prices touched $6.09 per pound in the spot market on January 6, 2026, compared to around $3.80 per pound a year earlier. Although prices eased slightly to nearly $5.84 per pound on January 9, copper still delivered nearly 60% returns on a year-on-year basis.
In India, copper prices also followed the global uptrend. On the Multi Commodity Exchange (MCX), copper futures reached a high of ₹1,392.95 per kilogram on December 29. As of January 9, prices were trading around ₹1,278.95 per kilogram, reflecting some short-term profit booking but maintaining a strong overall trend.
Why Copper Demand Is Rising Rapidly
Copper plays a critical role across multiple industries, including electrical wiring, power cables, construction, renewable energy, and manufacturing. The growing electrification of economies worldwide has significantly boosted copper consumption.
Market analysts point out that the rapid adoption of electric vehicles (EVs) is a key demand driver. EVs require substantially more copper than conventional vehicles, especially for batteries, charging infrastructure, and power systems. Additionally, the expansion of data centers, cloud computing infrastructure, and rising defense orders has further increased copper usage.
According to experts, increasing electricity consumption in homes and industries also supports long-term copper demand growth.
Supply Constraints Add to Price Momentum
While demand continues to rise, copper supply has struggled to keep pace. Analysts from global trading platforms note that current price trends reflect limited availability in global markets. Mining disruptions, declining ore grades, and delayed capacity expansion have contributed to tighter supply conditions.
A report by Motilal Oswal Wealth Management highlights that the United States alone purchased nearly 600,000 tonnes of additional copper, reducing global availability. Data cited from the International Copper Study Group suggests that the global copper market may face a shortfall of around 150,000 tonnes in 2026.
Experts believe that if inventory pressure persists, copper prices could remain firm in the short term. In the medium term, price direction will largely depend on how quickly new supply enters the market.
How Can Investors Gain Exposure to Copper?
Unlike gold and silver, retail investment options in copper remain limited in India. Currently, there are no copper ETFs or mutual funds, and physical products such as copper bars or coins are not widely available for retail investors.
As a result, the primary investment route is through commodity derivatives. Investors can trade copper futures on the MCX, but this option comes with challenges. The lot size of copper futures is 2.5 tonnes, which requires a significant capital commitment.
High Risk, High Reward Investment
Although futures trading requires only margin money, copper prices tend to be highly volatile. This makes the segment suitable mainly for investors with a strong understanding of commodities, price cycles, and risk management strategies.
Experts caution that while copper presents attractive long-term potential due to global electrification and infrastructure growth, retail investors should approach it carefully. Until more accessible investment products become available, copper remains a high-risk opportunity best suited for experienced market participants
