Along with the share market, tremendous growth is also being seen in commodities, especially in copper and silver. For the first time in the international market, Silver has reached $57 per ounce, while in India its price is trading around ₹1,75,000 per kg. At the same time, Copper has also made a new all-time high of $ 11,200 per tonne i.e. approximately ₹ 1045 per kg. The real reason for this rally is the increasing gap between Industrial Demand and Supply. The use of Silver is increasing rapidly in sectors like EVs, Solar Panels, Electronics and 5G, due to which the Silver Market is in deficit for the fifth consecutive year. Due to low mine production and limited recycling, supply is becoming tighter. Demand for Copper is also increasing rapidly in Green Energy and Infrastructure categories like EVs, Batteries, Charging Stations, Solar and Wind Power. At the same time, production is decreasing in many big copper mines around the world and new mining projects are also progressing slowly. It is estimated that by 2035 the Copper Supply Deficit may reach approximately 30%. For this reason, copper prices have increased by 25% in the last one year. For retail investors, there are two major options for exposure in the copper theme – Hindustan Copper Ltd and Hindalco Industries Ltd. Hindustan Copper’s CMP is 340 and has given 23.47% returns in one year. Hindalco’s CMP is 812 and it has given a spectacular rise of 22.65% in the last one year and 221.61% in the last five years. However, like Gold and Silver, the facility to invest in Copper ETFs is not yet available.
