As 2026 approaches, the leadership in the commodity market may undergo a significant shift. While gold and silver have delivered impressive gains over the past year, market experts believe the spotlight could move away from precious metals toward a key industrial commodity: copper. According to analysts, copper has the potential to outperform both gold and silver next year, offering investors a chance to earn robust returns.
Kunal Shah, Vice President and Head of Commodities Research at Nirmal Bang Securities, believes that copper could be the best-performing commodity in 2026. While he expects gold and silver to remain relatively strong, Shah points out that copper’s overall fundamentals appear significantly more favorable at this stage.
He has identified copper as his “top pick” for the coming year, citing a rare combination of supply constraints and rapidly rising demand. According to Shah, this unique market environment places copper in a much stronger position compared to precious metals.
Several global and structural factors are expected to drive copper prices higher in 2026. One of the key reasons is China’s ongoing focus on industrial expansion and technological innovation. China remains one of the world’s largest consumers of copper, and any improvement in its industrial activity directly boosts demand.
At the same time, copper concentrate supply remains tight due to limited new mining capacity and disruptions in existing production. This supply imbalance is further intensified by soaring demand from fast-growing sectors such as electric vehicles (EVs), renewable energy, power infrastructure, and data centers. Copper is a critical component in EV batteries, charging infrastructure, power transmission lines, and advanced electronics, making it indispensable for the global energy transition.
Shah estimates that copper prices on the London Metal Exchange (LME) could rise to $13,500–$14,000 per tonne in 2026. For Indian investors, this translates to a potential price range of ₹1,300–₹1,350 per kg on the Multi Commodity Exchange (MCX).
Based on these projections, copper could deliver returns of over 20%, outperforming many other commodities. Shah describes the current market conditions as a “perfect storm” driven by limited supply and strong, sustained demand.
Looking back at 2025, gold and silver exceeded expectations by delivering stronger-than-anticipated rallies. Shah noted that both metals reached their 2026 targets almost a year ahead of schedule. Importantly, this rally was not driven by seasonal trends but by global macroeconomic factors.
Rising interest rates in Japan led to stress in the bond markets, prompting investors to seek safety in gold. Additionally, growing interest in gold-backed cryptocurrencies emerged as a new source of demand, further supporting prices.
For 2026, Shah expects gold to find strong support near $4,000 per ounce. Under favorable global conditions, prices could move higher toward $4,650–$4,700 per ounce. However, he cautions investors against expecting a repeat of the sharp rally seen in 2025.
Instead, a more realistic outlook for gold in 2026 would be returns in the range of 10–15%, reflecting a phase of consolidation rather than aggressive upside.
Silver’s performance in 2026 is likely to be influenced by both supply-side factors and demand from industries such as electronics and data centers. Shah sees strong support for silver around $55 per ounce and believes that major downside risks are limited unless there is a sudden surge in supply.
He suggests that long-term investors could consider buying silver during dips in the $55–$60 range, with potential upside targets of $75–$80 per ounce. However, Shah remains cautious about extremely bullish scenarios, stating that prices above $100 per ounce appear unlikely in the near term.
Overall, experts believe that 2026 could be the year when base metals, especially copper, take the lead in the commodity market. While gold and silver are expected to offer stable and balanced returns, copper’s strong demand outlook and supply challenges position it as a potential outperformer.
For investors looking beyond traditional safe-haven assets, copper may offer an attractive opportunity in the evolving global commodities landscape.
Disclaimer: The views and recommendations mentioned above are those of individual experts and brokerage firms. Investors are advised to consult certified financial advisors before making any investment decisions.
