It’s a tough market, one where 25% auto tariffs are just the latest challenge for the bulls. But metals and miners are a “silver” lining for investors. Read about why stocks are weak, but metals are strong – and what to DO about it as an investor.
Peter Krauth Stock Investor
I’m back behind my desk after participating in the Swiss Mining Institute’s March Conference. While gold may be at the start of a mild near-term correction after becoming overbought, silver is looking less overbought and may hold up.
We enjoyed the inevitable fondue dinner that facilitated lots of great networking, then spent the next two days in meetings with companies of all stripes. The mood was unsurprisingly upbeat with gold near record highs above $3,035 and silver flirting with $34.
On the macro side, there was considerable talk of tariffs and a coming global reordering and how that is extremely bullish for precious metals. On the mining side, many experts suggested that merger and acquisition activity should pick up, and that near-term developers could be the most likely targets.
Focusing on silver, the physical market remains abnormally tight with lease rates many times their normal levels. Flows from London to the New York Comex exchange have been steady, with some 134Moz flowing West in the four months to the end of February.
The flow of metal from London to New York explains some of the jump in lease rates. Still, it’s intriguing that gold lease rates have eased while silver rates have remained elevated.
Nicholas Vardy The Global Guru
Most investors chase AI, semiconductors, and the latest crypto buzz. But one of the most explosive trades of the year is hiding in plain sight. That trade? Copper.
The red metal is quietly approaching a new all-time high. Commodities giants like Mercuria and Trafigura predict copper will surge past $12,000 per ton. That’s well above the $11,000 highs we had seen in 2024.
But this isn’t another hype-fueled moonshot. It’s not driven by Reddit threads or TikTok influencers. Copper’s story is rooted in macro fundamentals. And the world is only just beginning to notice. If you’re a contrarian investor looking for the next asymmetric bet, copper may be your best bet.
Copper isn’t just an industrial metal. It’s the wiring of the global energy transition. Electric Vehicles (EVs) demand four times the copper of their internal combustion cousins. Solar farms, wind turbines, and battery storage all run on copper. Even the AI-driven data centers capturing Wall Street’s fancy rely heavily on it.
And while demand soars, supply is stagnant. Bringing a new copper mine online takes 10 to 15 years. Regulations and rising geopolitical tensions in Chile and Peru only add more friction.
The result? A textbook imbalance. Demand rising. Supply stagnating. And prices are starting to reflect the pressure.
The US is also reportedly considering tariffs on imported copper just as it did with steel and aluminum. Traders are already front-running the move. Reports suggest over 400,000 tonnes of copper are headed to the US as buyers rush to beat potential tariffs.
If tariffs happen, US copper markets could tighten sharply. Domestic producers stand to benefit. Prices could spike. And we’ll have yet another politically driven catalyst on our hands.
Here are some ways to play it:
1. Copper ETFs
2. Major Miners
3. Junior Miners
4. Options Strategies
5. Copper Futures (for advanced traders)
Size your positions accordingly.
Mike Larson MoneyShow.com
You know I’m a big fan of precious metals like gold and silver. But what other metals and commodities are worth a look?
Today’s MoneyShow Chart of the Day sheds some light on the subject. It shows the year-to-date performance of the VanEck Rare Earth and Strategic Metals ETF (REMX) and the Global X Copper Miners ETF (COPX), and how their returns compare to the SPDR S&P 500 ETF (SPY). You can see that these mining ETFs are handily outperforming the S&P – up about 9% in both cases versus a drop of almost 4%.
REMX owns companies that produce, refine, and recycle metals and materials like lithium, lanthanum, and titanium. Holdings include Albermarle Corp. (ALB) and Sigma Lithium Corp. (SGML). COPX owns – you guessed it – copper-mining companies. Top positions include Southern Copper Corp. (SCCO), Freeport-McMoRan Inc. (FCX), and Ero Copper Corp. (ERO).
What’s the bull case for NON-precious metals and the companies that mine them?
First, President Trump just signed an executive order designed to boost domestic production of strategic and rare earth materials and elements. That could make it easier for miners to plan, fund, and build out projects here at home. Second, copper prices have rallied in 2025 amid hopes for demand-boosting stimulus in China, plus reports of dwindling mine supply.
So, if you’re looking for OTHER metals and materials plays outside of gold and silver…maybe give these a look in 2025.
Read the full article here
