High demand and scant supply lead to potential price surge for this raw material
Copper, an industrial metal essential for electrical wiring, chips, and clean energy technologies, could be on the verge of a price explosion in the coming years due to increasing demand and potential supply struggles. This potential upside has caught the attention of investors, and the WisdomTree Copper (WKN: A0KRKR) is a potential investment option for those interested in copper.
Analysts see a copper price of 15,000 US dollars as realistic by the end of 2025, representing a potential upside of 54 percent from the current level. This forecast is backed by Goldman Sachs, who predicts a doubling of demand from the Artificial Intelligence (AI) sector by 2026, and an increase in the copper deficit to 467,000 tons.
For those looking to invest in copper based on this predicted price surge driven by AI-related demand, the best options include copper-focused ETFs and leading copper mining stocks. These provide broad exposure to the copper market.
The Global X Copper Miners ETF (COPX) is the largest copper miners ETF, with significant assets (~$1.79B as of August 2025). It tracks a global copper mining index including major producers like Freeport-McMoRan and Glencore, offering diversified exposure across major copper mining companies worldwide.
The United States Copper Index Fund (CPER) tracks copper futures contracts directly, providing exposure to copper price movements. It benefited from a recent strong copper price run (+20% in six weeks in mid-2025), showing strong momentum driven both by technical signals and fundamental demand growth.
The iShares Copper and Metals Mining ETF offers exposure to 35 global companies involved in copper mining and production, tracking the STOXX Global Copper and Metals Mining Index. This is good for a wide sector coverage including metals related to copper mining.
Horizons Copper Producers Index ETF (TSX:COPP) is a Canadian copper equities ETF focused on pure-play and diversified copper-mining companies, suitable for investors specifically targeting the North American mining sector.
Investing in copper mining stocks within these ETFs gives leverage to the copper price surge expected due to AI-driven demand growth. Some of the major companies with significant copper production that benefit directly from rising copper demand include Freeport-McMoRan Inc, Glencore PLC, Lundin Mining Corp, First Quantum Minerals Ltd, and Antofagasta PLC.
For broad and diversified exposure, Global X Copper Miners ETF (COPX) and iShares Copper and Metals Mining ETF are solid choices. For direct exposure to copper price movements via futures, the United States Copper Index Fund (CPER) is recommended. For specific regional investment, consider Horizons Copper Producers Index ETF (COPP) in Canada.
Investors interested in broadly investing in copper stocks can consider the iShares Copper Miners UCITS ETF (WKN: A3ECC3) as a potential investment option. This ETF is listed on the Frankfurt Stock Exchange and offers exposure to a diverse range of copper mining companies.
In conclusion, the increasing demand for copper in the AI sector, coupled with potential supply struggles, could lead to a significant price surge for copper in the coming years. Investing in copper-focused ETFs and leading copper mining stocks can provide investors with an opportunity to benefit from this trend. However, as with any investment, it is essential to conduct thorough research and consider seeking advice from a financial advisor.
References: [1] Global X Copper Miners ETF Fact Sheet, August 2025. [2] iShares Copper and Metals Mining ETF Fact Sheet, August 2025. [3] Horizons Copper Producers Index ETF Fact Sheet, August 2025. [4] United States Copper Index Fund Fact Sheet, August 2025. [5] Goldman Sachs Copper Demand Forecast, August 2025.
Technology-driven growth in the Artificial Intelligence (AI) sector is poised to significantly increase demand for copper by 2026, potentially leading to a price surge for the industrial metal. Investors seeking to capitalize on this trend may find value in copper-focused ETFs, such as the Global X Copper Miners ETF (COPX) or the iShares Copper and Metals Mining ETF, as they offer diverse exposure to the copper market, including major players like Freeport-McMoRan Inc and Glencore PLC.
