How the Copper Rally May Fare in the New Year

Gold and silver were not the only metals to see breakout performances in the later half of 2025. 

Much like these other metals, copper also closed out last year in a highly favorable position. The metal has undergone a significant rally since October, following disruptions at a few key mines across the globe. These mine disruptions caused supply concerns to ignite, which helped push the price of copper to a number of new record highs for the remainder of the year.

This tremendous rally in the copper space has likewise played out for a number of different copper ETFs. For instance, take a look at how the Sprott Copper Miners ETF (COPP) has performed. COPP offers exposure to both copper miners and physical copper in a single ticker, giving the fund multiple avenues for capturing metal momentum. 

At the end of last year, the fund saw strong results from dialing in to the opportunities within the copper rally. As of December 31, 2025, COPP’s NAV has risen 26.05% year-to-date. 

Diving Into Copper’s 2026 Supply/Demand Dynamics

That being said, the question remains: Will 2025’s rally persist in 2026? It may be early, but the conditions still seem to be sitting in copper’s favor. 

To start, the supply constraint concerns for the metal don’t seem to be abating any time soon. Workers at Capstone Copper’s Mantoverde copper and gold mine in Chile have recently gone on strike, for instance. 

Other macroeconomic conditions could also affect supply woes. Worries over U.S. tariffs and recent actions in Venezuela may reignite further supply constraints as the year progresses. 

Supply worries could be accelerating while copper demand is on the rise, as well. Copper plays a key role in the manufacturing of a number of different electrical applications, like the energy, defense, and technology sectors. And with these kinds of products in high demand, Copper’s supply-demand picture for 2026 could prove to be quite compelling. 

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Past performance is no guarantee of future results.  One cannot invest directly in an index.

Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility.

Diversification does not eliminate the risk of investment losses. ETFs are considered to have continuous liquidity because they allow an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses, affect the Fund’s performance.

Sprott Asset Management USA, Inc. is the Investment Adviser to the ETFs. ALPS Distributors, Inc. is the Distributor for the ETFs and is a registered broker-dealer and FINRA Member. ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc. or VettaFi.

Exchange Traded Funds (ETFs):  SETM, LITP, URNM, URN, COPP, COPJ, NIKL, SGDM, SGDJ, SLVR, GBUG, METL

Physical Bullion Funds:PHYS, PSLV, CEF, and SPPP.

Gold and precious metals are referred to with terms of art like store of value, safe haven and safe asset. These terms should not be construed to guarantee any form of investment safety. While “safe” assets like gold, Treasuries, money market funds and cash generally do not carry a high risk of loss relative to other asset classes, any asset may lose value, which may involve the complete loss of invested principal.

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