January 26, 2026
Have You Been Watching Dr. Copper?
Dear Subscriber,
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| By Nilus Mattive |
Last week, I reiterated my bullish stance on gold (yet again).
And then a couple days later, Sean Brodrick gave you his own excellent analysis — plus a raised price target — as well.
You’ve no doubt seen silver soaring to incredible new highs as well.
That’s because of some of the same forces pushing gold higher … along with substantial industrial demand as well.
But the metals mania doesn’t stop there.
Take copper, which unlike the two major precious metals, is completely reliant on its utility in various business applications.
Indeed, because it moves solely based on that type of demand, “Dr. Copper” is widely considered a good economic indicator.
So, is the fact that it’s also been hitting new all-time highs a sign that the global economy is still humming?
My personal answer is … sort of.
Activity related to AI remains quite strong.
In fact, as I’ve explained before, it’s the biggest force propping up the economy as a whole. (Consumer spending, bolstered by investment gains related to AI, would be the other big one.)
I continue to believe this is a temporary — yes, bubble-like — situation that could come to a sudden halt at any time.
However, copper is a critical component in all the wiring of those data centers.
Just consider the fact that AI data centers require anywhere from three to five times as much copper as older systems.
This is why S&P Global predicts the rise of AI could increase copper demand as much as 50% by 2040.
Meanwhile, it’s hard to come up with new supplies. Even if there are known deposits, developing new mines takes a ton of time and involves endless red tape … especially if you want to operate in stable jurisdictions.
So, copper will continue riding that massive wave of AI data center buildouts and related projects as long as it lasts.
If anything, it’s one of the few ways I’ve actually recommended profiting from the AI boom.
For example, last October, I gave my Safe Money readers a little-known copper play that operates mines in several countries and is currently working to develop a major project in the United States.
It also mines zinc and molybdenum, which is a huge boon at a time like this when the U.S. government is rushing to find new domestic sources of critical minerals.
The stock has already risen more than 45% in the three months since my recommendation and has been handily outperforming both copper itself as well as other larger copper stocks.
Of course, there’s nothing wrong with taking a closer look at those bigger names, either.
For example, the Weiss Ratings system is still assigning Southern Copper (SCCO) a “B” rating.
The real takeaway here is that MANY metals and related investments have been soaring in value for a whole range of different reasons.
So, if you don’t have exposure to them, you’ve been missing out.
Adding some actual tangible assets — as well as stocks related to commodities and tangible assets — is a great way to further diversify your portfolio and prepare for a wide range of different market environments.
Copper investments are just another piece of that larger puzzle.
Best wishes,
Nilus Mattive
P.S. This all plays into something bigger that Sean is tracking. For his analysis, along with how to play it, watch this to the end.
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