Copper Surges 50% on MCX: Is it the New Gold for Investors?

• Copper saw a 50% return on MCX in 2025, with prices rising from Rs. 796 to Rs. 1,197 per kilogram, driven by supply disruptions and increased demand.
• The surge is fueled by global electrification trends, AI infrastructure growth, Electric Vehicles (EVs), renewable energy, 5G networks, and data centers.
• Experts advise a tactical allocation of 2-7% for copper in portfolios, as it's an industrial commodity, not a 'safe haven' like gold, and is highly volatile.
• Investment options in India include trading copper futures on MCX (high risk) or investing in Indian copper mining stocks like Hindustan Copper.
• Global copper ETFs and mining stocks offer international exposure via LRS, but come with currency risk, expense ratios, and regulatory limitations.

Why It Matters: Copper offers high growth potential due to structural demand but requires careful allocation and risk management due to volatility.