Rainer Michael Preiss – Global Markets Commentary
Copper, the metal often said—half-jokingly—to hold a “PhD in economics,” may prove to be one of the most powerful leading indicators of future wealth creation and wealth preservation in the years ahead. George Soros in his alchemy of finance stated “reading the mind of the market” and differentiate signal versus noise.
Zambia, Africa’s 2nd largest copper producing country and its currency the ZMW Zambia Kwacha is as of January 28th the 3rd best performing currency against the still almighty United States Dollar. Zambia is Africa’s second-largest copper producer, with copper mining accounting for around 70 % of export earnings and the country producing roughly 890,000 metric tons of copper in 2025. Zambia’s LuSE Lusaka stock exchange is currently the 9th best performing stock market in the world.
Much like Bitcoin trading near USD 1,000 in 2017, copper today sits at an inflection point where the narrative is forming but conviction is not yet universal. For 2026 and beyond, copper-related stocks, countries, and currencies deserve serious consideration as part of a globally diversified investment or retirement portfolio.
The copper story is becoming more mainstream—but it is not consensus yet. And seasoned investors will recall the timeless Wall Street adage:
“Just because an idea is becoming consensus does not necessarily make it wrong—or invalid.”
When investors talk about artificial intelligence, the conversation typically gravitates toward Nvidia, semiconductors, hyperscalers, and software platforms. Yet beneath every data center, AI factory, and electrified economy lies a far less glamorous—but arguably more essential—ingredient: copper.
AI is not merely a digital revolution. It is a physical, power-hungry infrastructure cycle. And copper is the metal that connects it all.
For private investors looking ahead to 2026 and the years beyond, copper offers a compelling way to participate in the AI theme—often at valuations and entry points that look far more reasonable than many parts of the technology sector.
AI is an electricity story—and copper is electricity’s backbone.
Every AI model trained, every inference run, and every cloud service scaled requires electricity. And electricity, in turn, requires power generation and grid expansion, transmission and distribution upgrades, transformers, substations, cabling, cooling systems, and backup power.
Copper remains irreplaceable in most of these applications due to its unmatched combination of conductivity, durability, and reliability. As AI data centers proliferate globally, copper demand rises not once, but multiple times—from the grid to the server rack.
This creates a familiar but powerful investment setup: visible, structural demand meeting constrained supply.
Copper exposure does not require betting on futures or speculative explorers. A disciplined private-client approach can include quality copper mining companies, selective mid-tier producers, grid and electrification suppliers, and measured exposure to copper-linked countries and currencies.
Copper should be treated as a thematic allocation within real assets and global equities—not as a short-term trade.
Types of copper ETFs include equity-based funds (such as COPX or ICOP), futures-based funds (such as CPER), and physically backed funds like the Sprott Physical Copper Trust.
ETFs such as COPX, CPER, and ICOP are typically liquid, transparent, and easy to trade, making them more accessible than many active mutual funds.
Southern Copper Corporation (NYSE: SCCO) is one of the world’s largest copper producers, with significant operations across the Americas and strong long-term leverage to copper prices. SCCO closing price on January 27th was USD 194.84. the company pays investors an indicative gross dividend yield of 2% in the currency of the United States.
The Global X Copper Miners ETF (COPX) is currently the largest copper-related ETF by assets under management, with AUM in the multi-billion-dollar range, making it the most liquid and widely used vehicle in the copper ETF universe. As of January 27, COPX closed at USD 90.42.
Copper investing is not without volatility. Cyclicality means copper stocks can outperform strongly in upcycles and lag during downturns. Mining projects also face operational risks including permitting delays, cost inflation, labor disruptions, and geopolitical uncertainty.
The AI revolution may be written in code—but it is built with copper.
And in the words of a Chinese proverb, fortune—and indeed wealth preservation—favors the brave and the prepared mind.
Rainer Michael Preiss, Partner & Portfolio Strategist at Das Family Office in Singapore
