At the 2025 Prospectors & Developers Association of Canada (PDAC) convention, a panel discussed the investment potential of copper and gold. The panel, titled “Copper vs. Gold: Which Metal Will Outperform?” was moderated by Gracelin Baskaran, director of the Critical Minerals Security program. Last year, gold and copper reached significant price milestones, with gold surpassing US$2,700 per ounce and copper exceeding US$5 per pound. While gold is often viewed as a safe haven during geopolitical uncertainty, copper plays a crucial role in industrial applications and resource security.
Global uncertainties in recent years have driven a surge in gold prices, influenced by factors such as inflation post-COVID-19, geopolitical conflicts, and economic instability. Similarly, the copper market has been impacted by inflation, real estate downturns, and geopolitical tensions, affecting both supply and demand dynamics. Declining grades for both metals have led to increased mining costs, posing challenges for the industry.
The case for investing in copper lies in its supply-and-demand dynamics. Despite modest demand growth in recent years, factors like urbanization, technological advancements, and energy transitions are driving copper demand. The sector is expected to shift from a surplus to a deficit position, requiring significant additional supply in the coming years. Rising costs, declining grades, and depleting deposits pose challenges for meeting future demand.
Conversely, panelists argued for investing in gold, highlighting its role as a safe asset amid economic uncertainties. Factors such as US debt levels, inflation, and geopolitical risks have bolstered the case for gold investment. Central banks and retail consumers have increased gold purchases, signaling a growing interest in the metal as a hedge against uncertainty.
Both metals present unique advantages for investors. While gold is considered a safe haven asset, copper’s fundamentals point to increasing demand driven by urbanization and technological advancements. The global economic landscape, characterized by uncertainty, positions both metals as attractive investment opportunities in 2025. Investors are advised to consider the distinct market drivers and potential risks associated with each metal before making investment decisions.
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