Copper Supply-Demand Imbalance Fuels Record Prices and Bullish ETF Returns

The supply of copper is dwindling, and demand is surging. According to S&P Global, zero new copper deposits were found in 2025, a stark contrast to the 263 major copper deposits discovered between 1990 and 2025. The majority of those discoveries occurred in the 1990s.

The permitting process for new mines is prolonged and complex, taking an average of 17.5 years for a deposit to reach production. Meanwhile, demand for copper is skyrocketing due to the rapid growth of artificial intelligence data centers, which require massive amounts of wiring and electrical components. A single AI data center can need up to 50,000 tons of copper.

The price of copper has responded accordingly, climbing 48% over the past year to an all-time high of $6.89 a pound in early September. Matthew Benjamin, an expert at The Motley Fool, recommends investing in the Global X Copper Miners ETF (COPX), which provides access to a broad range of copper mining companies.

Benjamin acknowledges that copper prices may fluctuate as investor enthusiasm for AI-related stocks waxes and wanes, but he sees the supply-demand imbalance persisting in the longer run. The ETF has returned 24% this year and 64% over the past year.