Not gold or silver, this metal is the new investment bet

Copper is making a big splash in the metals market quietly. While gold and silver still reign and continue to surge in prices, copper is not getting the spotlight but it is making a strong move. This metal is getting prepared to be the next big thing by itself without copper investors recognizing it.

Copper’s rising price surge

The price of copper has been on the rise globally, with an almost 20% increase within the year. To be more specific, the prices on the London Metal Exchange have gone beyond the $10,000 mark per tonne which indicates a very bullish trend. In India, this increase is also reflected in the stock market as the leading copper producer, Hindustan Copper's stock price have soared by more than 45% in only a month. Such a huge growth is a clear sign of how investors’ confidence in copper is getting stronger day by day.

Why is copper gaining momentum?

1. Crucial role in green energy and AI: The growing demand for copper is largely due to its inclusion in the clean energy technologies that rely on copper wiring. The world’s shift to green energy coupled with tech advances has made demand far higher than before for copper. An EV uses about 3 times more copper wire than a typical car while AI infrastructures require copper for building data centers and manufacturing electronic devices. This is the trend-driven demand that has pushed copper prices upwards this far.
   
2. Supply constraints and geopolitical issues: The shortage in supplies is the major contributor to the price spike. At the same time, mining for copper in the main copper-producing countries faces the effects of tough conditions and political problems, resulting in the interruption of the supply chain. On the other hand, the reduction of supply globally is making copper more scarce, and thus the prices are going up due to the increased demand for copper worldwide.
   

Expert projections and market sentiment

The leading financial institutions like Goldman Sachs and Motilal Oswal are bullish on copper’s future. The International Energy Agency envisages copper supply will fall short by 30% in 2035 while AI-related consumption will increase six times by 2050. Looking at these predictions, the copper price rally still has a lot of room to grow.

How to invest in copper

1. Copper mining and production stocks: If anyone wishes to make a copper-related investment, then it will be a good start to buy shares of a company that is involved in the mining and production of copper. For example, one of the ways Hindustan Copper is reflecting the rising value of the metal is through an impressive market performance and this makes investors have a chance of doing business with this trend and benefiting from it.

2. Copper futures on commodity exchanges: Copper futures can be a trading vehicle for those who know commodity trading well through the local Multi-Commodity Exchange (MCX) or other platforms. This will allow the investor to be directly at risk from price fluctuations and thus can bring them a high profit but must be done with utmost care because of the high risk and complicated nature of futures trading.

3. Global Copper ETFs: An investor looking for an easier and more simplified method can choose copper exchange-traded funds (ETFs) that are diversified globally. This way, you can invest in the copper resource sector worldwide and enjoy unlocking such a potent medium without directly engaging in trading.

It would be of great help to first get advice from a financial advisor if that was not your area of expertise before you decide to pour your money into copper.