Copper Poised for Historic Revaluation as Precious Metals Rally Hits New Peaks

The year 2025 has been a landmark period for the global bullion market, witnessing an unprecedented surge in gold and silver prices. As gold continues its steady climb toward the $5,000 mark, silver is increasingly expected to breach the $100 level in 2026. This bullish sentiment is clearly visible in the performance of the ProShares Ultra Silver fund, which recently touched $157.00, marking a daily gain of 2.19%. With total net assets worth $1.410 billion and a strategy aimed at doubling the daily returns of its benchmark, the fund’s trajectory highlights the massive capital flowing into precious metals. Currently trading near its 52-week high, the fund has come a long way from its yearly low of $31.88, reflecting the broader market’s appetite for silver.

Analyzing the Silver-Copper Disconnect

While gold and silver have dominated the headlines, copper is emerging as a significant point of interest for analysts looking toward 2026. Although copper prices have appreciated by nearly 40% over the past year, the metal still appears significantly undervalued when compared to its peers. The silver-to-copper ratio, a key metric used to gauge relative value, currently stands at approximately 12.7, with silver at $69 and copper at $5.42 on the COMEX. This is a sharp departure from earlier this year when the ratio was near 7, and even further from the historical average of below 6 seen over the last five years. This widening gap suggests that copper is currently “decoupled” from the broader metals rally, leaving substantial room for a price correction.

Global Supply Surplus Narrows Sharply

Fresh data from the International Copper Study Group (ICSG) indicates that the fundamental backdrop for copper is tightening. According to the November bulletin, the global copper market recorded a surplus of 122,000 tonnes between January and October 2025. This is a significant drop from the 261,000-tonne surplus reported during the same period in the previous year. As the gap between supply and demand continues to shrink, the possibility of a market deficit is becoming a primary concern for traders. Should these supply-side constraints intensify, they could provide the necessary momentum for a major price breakout in the industrial metal.

The Infrastructure Push and the AI Boom

The demand outlook for copper remains exceptionally strong, buoyed by its essential role in the green energy transition and the rapid expansion of artificial intelligence. Beyond traditional industrial uses, copper is a critical component in the construction of massive data centres required to power AI technologies. Global tech majors, including Amazon, Meta, Microsoft, and Deutsche Telekom, are expected to invest heavily in infrastructure in the coming years. This surge in demand is set to collide with a fragile supply chain, potentially driving prices to new heights as industrial consumers scramble to secure supply.

Production Risks and Market Outlook for 2026

On the supply side, the industry is facing persistent operational challenges. Disruptions at major sites like the Grasberg mine, operated by Freeport-McMoRan, underscore the risks inherent in the current production landscape. These bottlenecks are not isolated incidents but represent a broader trend of supply-side vulnerability. With demand from the technology sector set to skyrocket and supply remaining constrained, copper may well overshadow gold and silver to become the most significant commodity story of 2026.