Will Silver and Copper Lead the Next Phase of the Commodities Supercycle?

According to analysts at The Gold & Silver Club, two metals long viewed as secondary to Gold are now positioning to dominate the next phase of the Commodities Supercycle: Silver and Copper.

While traders remain transfixed by Gold’s meteoric rise, institutional capital has begun rotating aggressively into the most strategically important metals of the next decade.

The shift is subtle but unmistakable and those who understand it early may capture some of the most asymmetric opportunities in the entire Commodities complex.

Copper-To-Gold Ratio Hits a 50-Year Extreme

One of the most striking signals flashing across institutional terminals is the Copper-to-Gold ratio, now sitting at its lowest level in more than half a century. Historically, this ratio has acted as a reliable barometer of cyclical turning points. Today it is more than two standard deviations below its long-term mean.

In simple terms, Copper is trading at one of the steepest discounts to Gold in 50 years.

Gold has surged more than 55% year-to-date, driven by geopolitical fractures, U.S fiscal instability and relentless central-bank accumulation. Copper, however, has remained unusually stagnant – unresponsive to traditional macro drivers including industrial production and emerging-market growth.

That dislocation may now be reaching its inflection point.

“This extreme divergence suggests Copper is fundamentally undervalued,” says Lars Hansen, Head of Research at The Gold & Silver Club. “Once demand realities reassert themselves – and they will – the correction in the Copper-to-Gold ratio could be exponential.”

For value-oriented traders, this is rare asymmetry: compressed downside with open-ended upside.

The Rise of Strategic Metals

Silver and Copper are no longer simply industrial inputs; they are now officially strategic assets. The U.S Department of the Interior recently added both to its list of critical minerals – a designation that typically precedes federal incentives, preferential tariffs and national-security prioritisation.

Silver reacted instantly, breaking to fresh all-time highs. Copper, analysts argue, may be the next to experience institutional re-rating.

“Silver’s breakout was triggered by its reclassification,” Hansen notes. “Copper’s inclusion could prove even more significant given its centrality to electrification, AI infrastructure and global grid expansion.”

Demand Is Surging. Supply Is Shrinking. Prices Have Only One Direction

Copper currently sees annual demand of 25 million tonnes – but achieving global net-zero targets requires output to double. The three dominant demand drivers are accelerating simultaneously:

Electrification & EV Adoption – Each electric vehicle requires up to 90 kg of Copper, a twelve-fold increase versus traditional cars.

AI’s Energy Hunger – Global AI data-centre power consumption could surpass 2,200 TWh by 2035. The Gold & Silver Club estimates Copper demand for grid upgrades alone will surge to 1.1 million tonnes per year by 2030.

Chronic Supply Shortage – Mine grades are falling, discoveries are scarce and geopolitical disruptions are escalating. Structural deficits appear inevitable.

Silver’s trajectory is similar – but arguably more dramatic. Global demand has risen from 993 million ounces in 2016 to 1.16 billion in 2024, while supply has declined. The market has flipped from surplus to a deep structural deficit.

Silver is now on track to post its first 12-month candlestick with a 100%+ gain since 1979 – an event that simply does not occur in “normal markets.”

And the historical context is even more compelling:

Silver still trades nearly 80% below its CPI-adjusted 1980 peak, despite CPI itself understating real inflation.

“This is not a normal cycle” notes Hansen. “This is a monetary reset in motion”.

The Window of Opportunity Is Narrowing

Institutional investors are quietly accumulating Silver and Copper ahead of what many now expect will be the most explosive phase of the Commodities Supercycle. Once these metals break into true price-discovery mode, liquidity will compress, positioning will crowd and today’s discount valuations will vanish.

As Hansen puts it: “If you missed Gold’s move, Silver and Copper may be your second chance – and this time, the upside could be even greater.”

In an era defined by financial repression, currency debasement and accelerating demand for strategic materials, Silver and Copper may be standing at the threshold of historic multi-year advances.

For traders seeking asymmetric returns, the message is unequivocal:

This is the moment you cannot afford to miss.