We predicted the $XAU /Gold pump.
We predicted the $XAG / Silver pump.
🔷The next mega rally? Physical Copper.
History is repeating itself Industrial demand is about to break the Copper supply chain.
Some people will laugh but they won’t be laughing for long.
📌KEY FACTORS
📍Copper demand remains robust heading into 2026, fueled primarily by the global push toward electrification, renewable energy infrastructure, AI-driven data centers, and electric vehicle (EV) production.
📍These sectors are creating structural tailwinds that could add hundreds of thousands of metric tons to annual consumption for instance, data centers alone are projected to drive an additional 110,000 metric tons of demand this year compared to 2025.
📍In the US, infrastructure projects are expected to accelerate demand by around 6% in 2026, underscoring copper's role as a critical commodity in modern economies.
📍That said, the market isn't without risks. While current prices have hit record highs above $6 per pound in early January 2026 due to supply disruptions like mine strikes in Chile and operational issues at major sites,
📍some forecasts point to a growing surplus later in the year as new production comes online, potentially leading to an 18% price drop by year-end.
📍Exploration budgets have ballooned fivefold since the early 2000s, yet major discoveries are down 70%, which could keep long-term supply tight and support higher prices beyond 2026.
Overall, I'm bullish on copper's fundamentals it's essentially the "red gold" of the tech and green revolutions, with a projected 150,000 ton global deficit amplifying its strategic importance.
Short-term volatility from tariffs, trade flows, and aggressive negotiations is likely,
but if you're looking at the international market, demand growth should outpace any temporary corrections, making it a solid play for investors eyeing the energy transition.
