Don’t Buy Oil, Buy this Critical Commodity Instead

Oil is grabbing most of the attention due to the conflict in Iran, dominating the news cycles.

Experts debate supply shortages and inventory issues. Meanwhile, copper quietly surges, approaching record highs:

This trend isn’t new. It’s what led me to take charge of a junior copper exploration company back in 2022. I anticipated a copper bull market ahead. Although I was early, for investors, now is the ideal entry point.

Many look at the chart and feel like they’ve missed the boat. Here’s what happened in the previous copper rally:

We tracked Freeport McMoRan (FCX) to represent top copper producers from that time. After the crash, Freeport’s stock soared 400% from January 2009 to January 2011, while copper prices jumped by 225%.

Now let’s look at the past two years:

Here, Freeport’s shares only began climbing in April 2025, increasing roughly 130%, which is significantly less than their 2009 performance. Copper prices have risen about 45% in the same period.

This suggests there’s still significant upside potential.

Even if copper prices plateau temporarily, producers are on the verge of generating huge cash flows. This will ignite extensive consolidation, exploration, and development activity.

Yet these efforts won’t be sufficient.

It typically takes nearly 20 years to develop a copper discovery into full production. Due to almost a decade of inadequate investment from 2012 through 2023, the industry has seen very few new finds.

According to analysts at S&P Global, discoveries have plummeted by 90% since 1990. Only six major discoveries have emerged since 2021, and production slated to come online before 2030 will meet just about 80% of projected demand.

This is indisputable data. Copper is essential to modern life. If you expect the lights to illuminate when you flip the switch, copper is necessary. If you want to enjoy ChatGPT or any AI, more copper is required.

Recycling contributes some copper back to the supply chain, but it won’t fulfill the growing demand.

Therefore, copper prices must increase, and as the earlier chart indicated, this rise is already happening. Still, the market hasn’t yet factored in the upcoming earnings surge.

That’s why investing at this stage makes sense, even with the recent price gains. There are a few avenues to gain exposure to these stocks. For those seeking broad access to leading miners, the Sprott Copper Miners ETF (Nasdaq: COPP) is an excellent choice.

COPP includes a mix of the world’s largest copper producers (estimated percentages):

Freeport McMoRan (26%)
Teck Resources (11%)
Antofogasta (9%)
Hudbay Minerals (5.5%)
KGHM Polska Miedz (5.5%)
Lunding Mining (5.3%)
Southern Copper (4.7%)

These substantial producers stand to benefit strongly from rising copper prices. For those willing to accept higher risk, the Sprott Junior Copper Miners ETF (Nasdaq: COPJ) offers exposure to smaller, emerging copper firms:

Arizona Sonoran (6.3%)
Faraday Copper (5.9%)
Taseko Mines (5.2%)
Firefly Metals (4.8%)
Solaris Resources (4.7%)
Minsur (4.6%)
Osisko Metals (4.4%)
ERO Copper (4.3%)

This portfolio features smaller companies, providing a broader range of opportunities for gains through production and new discoveries. Greater risk accompanies the potential for higher returns.

Both ETFs performed well over the last year but have further growth potential. If you haven’t yet invested in copper, now is the time to consider it. While oil dominates headlines, copper is poised for a major surge.