Copper Surges Past Gold, Reaches Record Highs Amid AI-Driven Demand
Copper prices have hit record highs in September 2026, reaching $6.95 per pound on September 22. This development has sparked debate about whether copper can surpass gold as a store of value.
The price surge comes after a year of contrasting trends between the two metals. While copper has seen a nearly 20% climb this year and over 46% gain in the past year, gold has barely moved, increasing by just 0.02% over the same period.
Copper's strength is attributed to various factors, including Michael Burry's bet on the metal and tightening supply. Shanghai warehouse stocks of copper cathode have fallen to their lowest level since 2023, while London Metal Exchange (LME) inventories available to the market have decreased significantly.
However, it is essential to note that copper is not yet considered a monetary metal like gold, which central banks still hold as a reserve asset. Gold's global stock is worth close to $30 trillion, dwarfing copper's much smaller market.