Why are copper prices soaring?

Along with gold and silver, the price of copper is soaring. But unlike the two precious metals, copper prices are rising for economic reasons, not political.

Since the beginning of the year, the supply and demand picture for copper has tightened significantly. Supply has declined because of disruptions at the Grasberg copper mine in Indonesia, the second largest in the world. A fatal mudslide will keep this mine closed until the second quarter of 2026. Production from a major mine in Chile has also fallen due to operational problems.