New Delhi: The red metal, copper, is rapidly emerging as a major competitor to traditional precious metals such as gold and silver. Copper prices have surged to a historic high, crossing $13,000 per tonne, raising questions about whether it could outperform gold and silver in terms of returns in 2026.
Copper Prices Hit Record High
On Monday, copper prices climbed to an all-time high above $13,000 per tonne. Benchmark copper on the London Metal Exchange (LME) rose by as much as 4.7%, extending a rally of nearly 20% since mid-November. According to a Bloomberg report, the sharp rise reflects growing concerns over global supply constraints and increasing demand, particularly from the United States.
Market sentiment has turned bullish as traders and investors react to strong US demand, rising shipment activity, and fears of potential import tariffs, which could further tighten supply and push prices higher.
Strong Momentum on MCX as Well
The rally is not limited to global markets. On India’s Multi Commodity Exchange (MCX), copper prices also witnessed a strong upward trend. On Tuesday morning at around 11:30 AM, copper was trading at ₹1,327.50 per kilogram, up by more than ₹14. This marked a gain of over 1% in a single session. On Monday, copper had closed at ₹1,313.30 per kilogram.
Why Are Copper Prices Rising?
Several global and domestic factors are driving copper’s price surge:
- US Import Rush & Tariff Concerns: Fear of higher import duties has led to aggressive buying, pushing up premiums.
- Supply Disruptions: Labor strikes at major copper mines in Chile, the world’s largest copper producer, have raised concerns about supply shortages.
- Rising Demand: Copper is a critical component in power cables, electric vehicles (EVs), renewable energy infrastructure, and data centers.
- Supply-Demand Imbalance: While demand continues to rise, fresh supply additions remain limited, creating upward pressure on prices.
Copper Delivered 50% Returns in 2025
While gold and silver dominated headlines in 2025, copper quietly delivered impressive gains. On MCX, copper prices surged by nearly 50%, rising from around ₹796 per kg to ₹1,197 per kg during the year.
In terms of returns, copper outperformed major equity indices such as Nifty 100, Nifty Midcap 150, and Nifty Smallcap 250. However, gold delivered approximately 70% returns, while silver emerged as the top performer with a massive 170% return in 2025.
Can Copper Outperform Gold and Silver in 2026?
The big question now is whether copper can outshine gold and silver in 2026. Silver witnessed sharp volatility toward the end of 2025, falling nearly ₹30,000 per kg after touching ₹2.5 lakh per kg. However, it has since regained momentum and once again crossed the ₹2.5 lakh mark on Tuesday.
Gold, too, continues to maintain a strong upward trend amid global uncertainty and central bank buying.
Given the strong structural demand for copper from clean energy, EVs, and digital infrastructure, experts believe copper could pose stiff competition to gold and silver in 2026. While predicting exact returns remains difficult, the red metal is clearly positioning itself as a serious contender in the global commodities market.