The year 2025 belonged to metals, with silver and gold grabbing headlines for their spectacular rallies. However, as investors look ahead, a new consensus is forming on Wall Street: copper is poised to take centre stage. This shift comes after a year where metals across the board, from uranium to cobalt, witnessed significant price appreciation, a trend expected to continue into 2026.
The 2025 Metals Boom: A Periodic Table on Fire
Forget cryptocurrencies with quirky names; the real action was in elemental metals. Silver led the charge with an astonishing 140% gain in 2025. Sitting directly above it on the periodic table, copper posted a solid 36% increase, while gold, one space below, rose by 69%. The rally wasn't confined to just one column. Platinum surged 133%, palladium jumped 95%, and industrial metals like aluminium and tin rose 15% and 49%, respectively.
This broad-based surge highlights a market responding to multiple catalysts. Wall Street typically groups metals into precious (like gold, silver, palladium) and base or industrial (like copper, zinc, nickel). Uranium and cobalt occupy a special category, driven by unique demand drivers.
Drivers of the Rally: AI, EVs, and Economic Fears
The boom stems from a powerful mix of technological shifts and macroeconomic concerns. The electricity-hungry growth of artificial intelligence data centres has revived interest in nuclear power, pushing uranium prices up 11% in 2025 and 168% over five years. Similarly, the electric vehicle revolution continues to fuel demand for battery metals, with cobalt skyrocketing 115%.
On the precious metals front, fears of monetary debasement have been a key driver. With U.S. federal debt at 115% of GDP, a large budget deficit, a weakening dollar, and interest rate cuts despite persistent inflation, investors have flocked to gold as a store of value. This propelled gold from $2,068 per troy ounce two years ago to a recent $4,479, outperforming the S&P 500 over the past two decades.
Gold miners are reaping preposterous profits, with returns nearing those of the tech sector. Interestingly, after lagging in 2024, gold mining stocks outperformed the metal itself in 2025, with companies focusing on debt reduction and share buybacks.
2026 Outlook: Why Copper is the New Consensus Trade
While gold's risk-reward profile may be less favourable now, analysts believe its bull run isn't over. RBC Capital targets $4,800 by end-2026, Société Générale sees $5,000, and economist Ed Yardeni has a long-term forecast of $10,000 if the S&P 500 hits his 2029 target.
However, the most unified bullish call on Wall Street is currently for copper. Major banks like J.P. Morgan and UBS point to acute supply disruptions, fragile inventories outside the U.S., and renewed buying from China as key reasons. J.P. Morgan recommends shares of Freeport McMoRan, while UBS favours Anglo American and Teck Resources for copper exposure.
UBS also highlights aluminium and lithium as favourites for 2026, recommending Norsk Hydro and Albemarle, respectively. For gold, they suggest Barrick Mining. For investors seeking diversified exposure, ETFs like the SPDR S&P Metals & Mining ETF or the Invesco DB Precious Metals ETF are options, though their compositions and fees vary.
Notably, cryptocurrencies have failed to act as 'digital gold' in this cycle, with the Nasdaq Crypto Index down 15% in 2025. As 2026 approaches, the metals complex, led by industrial workhorse copper, appears set to remain a critical arena for global investors.
