Commodities markets have taken center stage in 2025, with copper, gold, and silver experiencing dramatic price surges that have left traders, investors, and industry observers abuzz. The forces behind these rallies are as complex as they are compelling, weaving together threads of technological change, geopolitical tension, and shifting investor sentiment.
Copper, often dubbed "the metal of electrification," has seen its price soar by an astonishing 35% this year, according to Reuters. Its unmatched electrical conductivity makes it indispensable for power grids, data centers, electric vehicles, and the broader clean energy infrastructure. As the world pours billions into modernizing electricity networks and building out renewable energy projects, the hunger for copper has become insatiable.
"Investors who want a broad basket of AI interests will also buy into financial products which include hard assets that feed into data centres," said Daan de Jonge, an analyst at Benchmark Mineral Intelligence, as quoted by Reuters. "Investors will buy copper-related assets such as ETFs." This new wave of investor appetite has been fueled by the rapid growth of artificial intelligence, which is reshaping commodity strategies and driving demand for the raw materials that power the digital economy.
One clear sign of this shift is the launch of the world’s first physically backed exchange-traded copper fund by Canada’s Sprott Asset Management in mid-2024. The fund, which holds close to 10,000 tons of physical copper, has jumped nearly 46% this year and now trades at almost 14 Canadian dollars per unit. This innovative investment vehicle has made it easier for both institutional and retail investors to gain exposure to the copper market, further amplifying demand.
Yet, while demand is surging, supply-side pressures are causing headaches for market participants. A recent Reuters survey found that the copper market is expected to run a deficit of 124,000 tons this year, with the shortfall projected to widen to 150,000 tons in 2026. Despite these concerns, copper inventories across global exchanges have actually increased by 54% in 2025, reaching 661,021 tons. But this headline number masks an important detail: much of this metal has been funneled into the United States since March, ahead of planned import tariffs announced by President Donald Trump.
Comex inventories have reached a record 405,782 tons this year, now accounting for 61% of total exchange-held copper, compared to just 20% at the start of 2025. "It feels incredibly tight because all of this material is going to the US," de Jonge explained to Reuters. The looming threat of tariffs has drawn shipments to American shores, even though refined copper was ultimately excluded from the 50% import tariffs that took effect on August 1. Nevertheless, US duties on the metal remain under review, with an update expected by June 2026.
The demand story doesn’t end there. The global energy transition, particularly the expansion of wind and solar technologies, is expected to significantly lift copper consumption in the coming years. Macquarie estimates that global copper demand will reach 27 million tons in 2025, up 2.7% from the previous year. Demand in China, the world’s largest consumer, is projected to grow 3.7%, while consumption outside China is forecast to rise 3% in 2026. "Bullish sentiment is being driven by the narrative around tight supply, supported by macro news flows," Macquarie analyst Alice Fox told Reuters.
Meanwhile, precious metals have staged their own rally, with gold and silver prices making headlines in the week ending December 13, 2025. According to the India Bullion and Jewellers Association (IBJA), the price of 24-karat gold increased by Rs 4,188 to Rs 132,710 per 10 grams, up from Rs 128,592 a week earlier. The surge wasn’t limited to gold: silver prices jumped by an eye-popping Rs 16,970 to Rs 195,180 per kilogram, up from Rs 178,210 a week before.
On December 12, silver touched an all-time high of Rs 201,388 per kilogram during intraday trading on the Multi-Commodity Exchange (MCX). The silver future contract expiring March 5, 2026, rose more than Rs 2,400 during the day before settling at Rs 200,462, up Rs 1,520 from the previous session’s close. Gold futures expiring February 5, 2026, also surged 1.87% to close at Rs 134,948 per 10 grams, according to IBJA data.
The rally in domestic bullion prices is largely driven by continued strength in international markets, with both gold and silver hovering close to their all-time highs. On the COMEX, gold was trading at $4,328 per ounce, while silver stood at $62 per ounce.
What’s behind these spectacular moves? Nikunj Saraf, CEO of Choice Wealth, weighed in: "Gold and silver ETFs have been quiet heroes of the year, delivering standout returns even as equity markets saw bouts of volatility. Silver, especially, stole the spotlight—a rare combination of booming industrial demand from solar, EVs, and electronics, alongside tightening global supply, pushed prices sharply higher."
Silver’s price rise has been attributed to its booming industrial demand, particularly from the solar, electric vehicle, and electronics sectors, all of which are expanding rapidly as the world transitions to greener technologies. At the same time, tightening global supply has created a perfect storm for price appreciation.
Gold, on the other hand, has held its ground and climbed steadily, supported by persistent central bank buying and investors seeking safety amid geopolitical and inflation worries. In times of uncertainty, gold’s reputation as a safe haven asset tends to shine. This year has been no exception, with central banks around the world continuing to add to their gold reserves.
Exchange-traded funds (ETFs) focused on gold and silver have delivered standout returns in 2025, providing a buffer for investors during periods of equity market volatility. These vehicles have helped democratize access to precious metals, allowing a wider range of investors to participate in the rally.
The interplay between industrial demand, investment flows, and macroeconomic uncertainty has made the commodities market a focal point for 2025. Whether it’s the copper needed to wire the world’s future or the gold and silver that offer shelter from economic storms, these metals are telling a story of transformation, resilience, and—yes—opportunity.
As the year draws to a close, all eyes remain on the next chapter. Will copper’s rally continue as the world electrifies? Can gold and silver hold their gains in the face of shifting central bank policies and evolving global risks? For now, the only certainty is that commodities have reclaimed their place at the heart of the financial conversation, and the world is watching every tick upward.
