The price of copper has hit new highs, with contracts for future delivery tipping over $6.85 per pound on 6 August. Copper traded on the London Metals Exchange (LME) rose to nearly $14,500 per tonne.
Gold had captured the limelight for metals investors over the past two years, but the sheen has come off the yellow metal as expectations for higher interest rates rise.
As gold prices stagnate, though, copper prices are surging.
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“The immediate catalyst here has been the moving of refined copper into the US ahead US tariffs on refined copper, tightening availability elsewhere,” said Tom Bailey, head of research at exchange-traded fund (ETF) issuer HANetf.
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“But tariffs and stockpiling are only part of the story,” he added. “The bigger issue is that copper demand is rising across several major structural themes at the same time.”
Thanks to its qualities as a conductor, copper prices are heavily linked to demand from electricity and power generation, and as such it is tapped into several growth themes such as artificial intelligence (AI), defence and the energy transition.
Why are copper prices rising, and how can you gain exposure?
Why are copper prices rising?
The threat of US tariffs has had the biggest immediate impact on copper prices.
IHS Markit shipping data shows that 200,000 metric tons of copper entered the US in July – the biggest monthly inflow in the company’s dataset going back to 2014, according to Bloomberg.
US commerce secretary Howard Lutnick had been expected to announce a copper tariff decision on 30 June but the deadline passed without an announcement. US importers appear to have stockpiled the critical metal all the same, in anticipation of an upcoming tariff decision.
There have also been supply disruptions this year, and in recent weeks extreme weather in Chile – which produces more than a fifth of the world’s copper – has hampered production at some mines.
London-listed producer Antofagasta (LON:ANTO) was forced to halt production at its Los Pelambres facility following power outages that started on 18 July – though it resumed operations on 23 July and the group has not adjusted its full year production guidance.
But even minor disruptions to copper production can be significant, because it is so time-consuming to increase supply.
“Discoveries of copper deposits are getting rarer,” said HANetf’s Bailey. “And even when a discovery is made, it now takes an average of around 17 years to get a mine producing, more than double the time it took in the 1990s.”
What’s happening to demand for copper?
Copper is the go-to common electrical and thermal conductor for industrial usages, lots of it is typically needed when building electrical infrastructure. This includes infrastructure that generates electricity, but also infrastructure that uses electricity – especially power-hungry buildings like artificial intelligence data centres.
“The AI capex supercycle is expected to see data centre electricity demand double by 2030,” said Bailey. “Data centres need huge amounts of copper-intensive electrical equipment such as power cables, transformers, cooling systems and grid connections.”
More copper will also be increasing demand thanks to its prevalence in modern military equipment – with countries across the world aiming to boost defence spending – and to underpin the green energy transition.
“Copper is used throughout modern military equipment, such as radar, sensors, guidance systems, and munitions,” said Bailey. “With military expenditure at record levels and governments planning further increases, this demand is unlikely to disappear.
"The energy transition has also not gone away,” he added. “Around 20.8 million electric vehicles were estimated to have been sold globally in 2025, more than six times the number sold five years ago. An electric vehicle typically requires around 2.4 times as much copper as a conventional combustion-engine car.”
How to invest in copper
There are several ways to invest in copper. Many professional copper traders will buy and sell futures contracts; however, that’s not generally recommended for retail investors as it is risky and involves a degree of speculation.
You can easily gain exposure to copper spot price movements with an exchange-traded commodity (ETC), though. An ETC is like an exchange-traded fund (ETF), but rather than an index it tracks the price of one particular commodity.
“These are ideal for investors seeking pure-play exposure to the metal itself, without the added exposure of mining company performance,” says Lale Akoner, Global Market Analyst at eToro.
One example is WisdomTree Copper (LON:COPA). This London-listed ETC tracks the dollar price of copper.
You can also invest in copper mining ETFs. Like most ETFs these are bundles of stocks: the stocks will be those of copper mining companies.
The Sprott Copper Miners UCITS ETF (LON:COPP), for example, provides exposure to small-, mid- and large-cap copper miners.
“These funds tend to amplify movements in copper prices through equity exposure, potentially delivering higher returns (and risks) than the metal alone,” says Akoner.
You could also buy the shares of copper miners directly. Some major FTSE 100 companies like Antofagasta, Glencore (LON:GLEN) or Rio Tinto (LON:RIO) have large exposure to copper mining. Like copper mining ETFs buying these shares could amplify risks and returns compared to investing in copper ETCs (with less diversification to mitigate this risk and reward compared to buying a copper mining ETF).
“Finally, diversified commodity funds and investment trusts, such as BlackRock World Mining Trust (LON:BRWM) or JPM Natural Resources Fund can provide broader exposure,” says Akoner. “These vehicles typically hold positions across multiple metals and mining companies, including those focused on copper, making them a useful option for investors seeking a more balanced approach.”
