Gold has long been the default hedge for investors looking to protect value. But a growing number of analysts are now pointing to a different metal as the more interesting long-term bet: copper.
Investment commentator Advait Arora recently shared why he believes copper deserves serious attention, calling it a metal that quietly leads economic cycles rather than reacting to them. His argument is not based on short-term price moves, but on how copper behaves when growth is about to accelerate.
Copper Has Always Moved First
One of the strongest points in Arora’s thesis is history. For nearly 175 years, major industrial upcycles have been preceded by rising copper prices. In many cases, copper starts moving well before GDP data or PMI indicators confirm that growth is picking up.
“Copper leads growth,” Arora noted, pointing out that it often acts as an early signal rather than a late confirmation. That makes it useful not just as a commodity, but as a macro indicator.
#Copper : Think EVs, renewables, infra & "the new gold" ! 3 solid ETFs to ride the wave:
1. Global X Copper Miners ETF (COPX), Global copper miners.
2. United States Copper Index Fund (CPER) (Tracks copper futures)
3. iShares Copper & Metals Mining ETF (ICOP) (Copper + metals…
Demand Isn’t Optional Anymore
Copper demand today looks very different than it did in past cycles. Electric vehicles use roughly four times more copper than traditional internal combustion cars. Power grids are expanding. Renewable energy projects are multiplying. Data centers are being built at a rapid pace.
All of that requires copper, and there are no easy substitutes at scale. As Arora put it, demand is now “locked in.” These sectors are not discretionary. They must consume copper to function.
On the other side of the equation, supply remains constrained. New copper mines take 12 to 15 years to develop. Ore grades have declined sharply over the past two decades. At the same time, investment in new mining capacity lagged demand for years.
That mismatch matters. When demand accelerates faster than supply can respond, prices don’t just rise temporarily. They tend to reset higher.
Why $5 Copper Is Different
Copper trading near $5 per pound has drawn skepticism, with some calling it hype-driven. Arora disagrees. He argues that prices at this level reflect structural shortages, not a short-term China or housing boom.
This cycle also looks broader than past ones. EVs, AI infrastructure, defense spending, and reshoring efforts are all hitting at the same time. That stacking of demand drivers makes the copper story harder to reverse.
Gold still has a role. It protects against monetary risk and currency debasement. Copper, however, tells a different story. It benefits from real-world buildout, not fear.
Calling copper “the new gold” may go too far, but the comparison makes sense in one way. Gold protects value. Copper participates in growth. In a world focused on electrification and infrastructure, that growth exposure matters.
Copper may not replace gold, but ignoring it could mean missing one of the clearest long-term commodity setups in the market today.
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