NEW DELHI: Copper is fast emerging as one of the most talked-about commodities in the market, with several market experts tagging it as the “New Gold.” Amid growing curiosity over whether the industrial metal can match the stellar returns of traditional safe havens like gold and silver, market analysts point to a sharp shift in demand-supply dynamics as the primary driver behind this trend.
Commodity expert Ajay Kedia believes copper demand is set to rise significantly in the coming years. This optimistic outlook is backed by surging industrial consumption and constrained global supply.
Why Copper Is Being Termed the ‘New Gold’
According to Kedia, copper has delivered a strong performance over the past year, attracting steady interest from retail and institutional investors alike.
Post-COVID, rapid global expansion across sectors such as electric vehicles (EVs), solar energy, data centres, and semiconductors has driven heavy consumption of the metal. As these future-ready industries scale up, copper’s baseline demand continues to climb steadily.
High Demand Meets Severe Supply Bottlenecks
The biggest hurdle for copper remains on the supply side. Reports indicate a structural lag of nearly 17.5 years between demand growth and supply response, meaning new mines simply cannot be developed fast enough to keep pace with consumption.
Key factors straining global supply include:
- Extensive timelines required to develop and operationalize new copper mines.
- Ongoing labor shortages across major mining hubs.
- Production bottlenecks linked to technical issues and raw material constraints.
- These structural challenges suggest that supply pressures are likely to persist for years to come.
Growth Drivers: EV, Solar, and Digital Infrastructure
Copper’s utility extends far beyond traditional construction. Its usage is growing rapidly across:
- Electric Vehicles (EVs)
- Solar Energy Infrastructure
- Data Centres
- Semiconductor Manufacturing
- Power Transmission Grids
As global markets transition toward clean energy and advanced digital infrastructure, copper demand is expected to gain further momentum.
Addressing market concerns, Kedia noted that while Chinese imports have shown temporary weakness, the primary risk lies in supply constraints rather than demand destruction. As global economic recovery gathers pace, industrial demand across key sectors is expected to rebound sharply.
Is There Still Money to Be Made in Copper?
For investors who missed out on the rallies in gold and silver, copper presents a fresh entry point. Trading around the Rs 1,330–Rs 1,335 mark, the commodity exhibits strong potential for upside movement in the near term.
Ajay Kedia’s Trading Strategy for Copper:
- Attractive Entry Zone: Rs 1,320 – Rs 1,330
- Stop Loss: Rs 1,260
- Time Horizon: 3 to 4 months for healthy upside potential
The Bottom Line
Copper is no longer viewed merely as an industrial metal; its critical role in clean energy and tech infrastructure makes it a strategic asset for the future.
However, market participants must assess their risk tolerance and consult certified financial advisors before entering commodity positions. If global industrial growth maintains its current trajectory, copper could yield substantial long-term gains for investors.
