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Investor focus shifts to commodities as gold and silver hit record highs. Copper surges 59 percent, driven by EV demand and supply tightness.
Can Retail Investors Invest in Copper in India? What Are the Options
The mindset of investors has shifted back to commodities due to record returns by two prime bullions – silver and gold – over the past year. Amid the lackluster movement of equities in India, a surge in investment in gold and silver via ETFs or Mutual Funds has been witnessed, as seen in data of Association of Mutual Funds India (AMFI).
With both silver and gold trading at record highs after a phenomenal rally in 2025, which has been continued somewhat in 2026 too, there’s an impatience among investors to pick up the next potential commodity – copper.
Ignored in the spotlight of gold and silver’s rallies, base metal copper is at its highest level since March 2022 according to a Moneycontrol report citing London Metal Exchange (LMEX) Index data.
On Comex, copper prices hit a fresh record high on January 06, 2026, at $6.069 per pound. This marks a 59.63 percent year-on-year jump from $3.802 per pound. As of 2:24 pm IST on Friday, January 10, copper was trading slightly lower at $5.849 per pound.
Industry experts attribute the major reasons behind the surge: continuous supply tightness, strong investor demand, electric vehicle adoption and expansion of data-centre infrastructure.
This reflects that copper is a utility product with various applications in different future-age technologies.
Even domestic copper futures rose almost 36 per cent in the last one year, marking the third-best commodity in terms of appreciation.
“Copper’s price surge signals limited physical availability and a growing demand from electrification. Globally, demand has improved due to EV adoption, data-centre builds, and defence orders staying strong.
“A softer rate outlook and some US dollar weakness lifted risk appetite, while exchange inventories remained low, increasing price sensitivity,” said Ross Maxwell, Global Strategy Operations Lead, VT Markets to Moneycontrol.
An MC report citing Motilal Oswal report said that there’s an imbalance in copper supply, with US having roughly 6 lakh tons of copper in excess while the rest of the world facing the shortage.
Maxwell thinks that in the near term, momentum can persist if inventories stay under pressure and macro conditions do not change drastically. Medium-term sustainability depends on whether new supply can catch up and whether demand growth can be met. Expect volatility around policy and growth data releases.
Can Retail Investors Invest In Copper?
The simple answer is no. There’s no copper ETF or mutual fund as of now, with no physical copper-bars and coins.
Only route that exists now for retail investors is through derivatives of copper – copper futures.
Retail investors can gain exposure through the Multi Commodity Exchange of India (MCX), where copper futures are traded, but this option has clear limitations. The contract lot size is large at 2.5 tonnes, leading to significant exposure and higher margin requirements.
While futures trading involves paying only margin money, sharp price swings can make it risky. As a result, this route may not be suitable for most small investors unless they have a strong understanding of commodities and risk management.
Overall, despite copper’s attractive long-term outlook, direct retail participation in India is still restricted. Investors should tread carefully and consider indirect avenues rather than taking leveraged positions in futures.
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
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January 10, 2026, 11:59 IST
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