Remember copper? That reddish metal your high school chemistry teacher made you memorize on the periodic table? Well, plot twist: it’s having its best year since 2009, and honestly, it’s about time this underdog got some love.
While everyone’s been obsessing over gold (fair enough, it’s shiny), copper has quietly been crushing it with a 42% gain this year. That’s right – the metal that’s basically the backbone of everything electronic is finally getting the recognition it deserves.
So what’s behind copper’s main character moment?
Three words: artificial intelligence boom. Turns out, all those fancy AI data centers everyone’s building need massive amounts of copper wiring. Who knew that teaching computers to write poetry would require so much old-school metal? It’s like the ultimate collaboration between the future and the industrial age.
But wait, there’s more! (Yes, I went there.) We’re also dealing with a classic supply-and-demand situation that would make your Econ 101 professor proud. The world wants more copper for everything from electric cars to renewable energy, but mining companies are struggling to keep up. It’s like trying to get concert tickets for your favorite band – everyone wants them, but there just aren’t enough to go around.
Then there’s the Trump factor. Remember when he announced a 50% tariff on copper imports? Yeah, that sent prices through the roof faster than you can say “trade war.” Companies started hoarding copper like it was toilet paper in 2020, which only made the shortage worse.
The numbers are pretty wild: copper hit a record high of nearly $13,000 per metric ton this week, and it’s been on an eight-day winning streak – its longest in eight years. Even the Wall Street crystal ball gazers are bullish, with Goldman Sachs predicting it could hit $15,000 over the next decade. That’s a 22% upside from current levels, for those keeping score at home.
But here’s the thing that really gets me: copper has been the reliable friend in the metals group chat while gold gets all the attention. Gold’s up 64% this year (show-off), but copper’s been quietly doing the heavy lifting in our actual economy. Every time you charge your phone, drive an electric car, or use literally any electronic device, you’re basically giving copper a little high-five.
JPMorgan thinks copper will keep climbing to around $12,500 per metric ton in the first half of next year, thanks to continued AI demand and potential tariff rollbacks. Meanwhile, Goldman Sachs is calling it their “favorite long-run industrial metal” – which is basically Wall Street speak for “we really, really like this thing.”
The bottom line? While everyone’s been chasing the next hot tech stock or crypto coin, copper has been quietly having its moment. Sometimes the most boring investments turn out to be the smartest ones. Who would’ve thought that the same metal used in ancient coins would be essential for training ChatGPT?
Now that’s what I call a comeback story.