Copper futures reached an all-time high of $6.95 a pound on September 22, reigniting discussions about whether the industrial metal might begin narrowing the valuation gap with gold as a reliable store of value.
This surge culminates a 12-month period defined by contrasting trajectories for the two metals.
Copper Outpaces Gold’s Flat Year
A nearly 20% increase this year positions copper for one of its most remarkable annual performances on record. When measured over the past year, the increase expands to over 46%, supported by tightening supply and Michael Burry’s investment in copper.
By contrast, gold has remained essentially stagnant, gaining a mere 0.02% across the same timeframe.
Beneath that stability lies a volatile journey for gold, which surged past $5,600 an ounce in late January 2026 driven by safe-haven buying. The precious metal plummeted sharply soon after and has spent the subsequent months recovering to a flat line.
Conversely, copper’s momentum stems from different drivers. Shanghai warehouse reserves of copper cathode dropped to 43,900 tonnes, marking the lowest figure since 2023. Meanwhile, available inventories at the London Metal Exchange (LME) decreased to 133,725 tonnes.
Earlier in the month of September, a delayed United States tariff initiative caused an immediate price drop of nearly 8%. The industrial metal has since recovered those losses and advanced to unprecedented highs.
Not Quite Digital Gold Yet
According to CNN, shrinking inventories, tariff questions, and consumption driven by artificial intelligence (AI) are propelling copper toward record territory.
Highlighting a similar dynamic last week, Burry pointed out that developing new copper reserves requires approximately 18 years before production begins. Conversely, artificial intelligence data centers generate new demand in just two to three years. This disparity heavily influenced his decision to invest in a copper mining company rather than AI equities.
These factors do not elevate copper to the status of a monetary metal like gold, which continues to serve as a reserve asset for central banks. The total global valuation of gold sits near $30 trillion, vastly overshadowing the more modest market size of copper.
Even so, the performance gap in 2026 highlights how industrial demand fueled by AI is altering investor perceptions of commodity scarcity.
The upcoming catalyst rests with Washington. A prolonged Commerce Department determination regarding tariffs on refined copper imports remains outstanding, and market participants anticipate significant price volatility once the ruling is issued.
At present, copper leads in growth performance, while gold maintains its dominance in sheer market scale.