Copper Hits Record High, Raising Questions About Store-of-Value Potential

Copper futures hit a fresh all-time high of $6.95 per pound on September 22, sparking debate about its store-of-value potential.

This record high is unusual because it comes during a year where gold has barely moved, adding just 0.02% in the same stretch.

The divergence between copper and gold suggests that investors are rethinking what constitutes scarcity across asset classes.

Copper's strength is driven by industrial demand, particularly from artificial intelligence-driven data centers, which can add fresh demand on a two-to-three-year horizon.

Michael Burry has taken a concentrated copper bet, highlighting the asymmetry between copper production cycles and AI demand timelines.