Silver and copper stand out, surpassing gold to dominate the commodity market—tight supply drives investors to concentrate their positions

Source: BlockMedia Original Title: Silver and Copper Overtake Gold to Lead Commodities Market… Investors Flock Amid Supply Uncertainty – Bloomberg Original Link:

Market Trends

Silver and copper, traditionally seen as safe-haven assets like gold, are becoming the new “hot trades” in the commodities market by the end of 2025. Driven by tightening supply in the London market, surging demand from India, and inflows into ETFs, silver prices have shown a steep upward trend over the past two months, nearly doubling from the beginning of the year.

According to Bloomberg, silver supply in the London precious metals market saw a slight rebound in recent weeks, but domestic inventories in China remain at their lowest level in a decade, and global supply imbalances persist. Against this backdrop, both institutional and retail investors are increasingly betting on silver- and copper-led commodity rallies.

Price Performance Comparison

Since gold prices hit an all-time high on October 20, silver has continued to rise, recently surging over 11% to a new historical high. Copper prices rose about 9% during the same period, approaching record highs. In contrast, gold has traded sideways after peaking, showing relative weakness.

ETF Inflows Fueling the Rally

The market is paying particular attention to the investment fervor in silver-related ETFs. The implied volatility of the world’s largest silver ETF, the iShares Silver Trust, recently climbed to levels last seen during the retail trading frenzy in early 2021. Over $1 billion flowed into the ETF in the past week, surpassing inflows into gold-related ETFs and further boosting spot silver prices.

A senior analyst at Global X ETF stated, “Western investors have long had a low allocation to precious metals, and the recent ETF inflows are just the beginning.” He added, “If allocations return to normal levels, there is still plenty of upside potential.”

Active Futures and Options Markets

In the COMEX silver futures and options market, bullish investors are piling in and trading actively. Especially notable are “lottery-style” bullish options targeting a rally in early 2026—over 5,000 contracts of the February $80/$85 call spread were traded within two days, reflecting strong sentiment.

An analyst at Marex Group pointed out, “Charts are showing a steep upward curve unlike before, with concentrated buying pressure entering the market in the short term.”

Technical Risk Warnings

Currently, silver is trading at an 82% premium over its 5-year average, creating technical pressure. Bloomberg Intelligence’s chief commodity strategist believes prices are “approaching the most extreme year-end deviation since 1979.” He cautioned, “Such a sharp upward chart lacks clear resistance levels, making it difficult to predict a top—it could be $85, or it could be $60.”

Copper Market Outlook

Copper prices are also being driven by expanding demand from clean energy and data center power, with medium- to long-term supply shortages becoming more likely. In the March copper options market, there’s been a sharp increase in open interest for call options, reflecting expectations for further gains.

Copper recently broke through $11,600 per ton on the London Metal Exchange (LME), reaching an all-time high. On New York’s COMEX market, prices are higher than those in London as the U.S. government announced an expanded tariff policy to boost domestic supply, leading to a surge in arbitrage demand and record U.S. imports. Major traders such as Mercuria, Trafigura, and Glencore are actively participating in these trades.

A StoneX Financial trader commented, “Structurally, copper is a strong commodity—major mines are facing supply disruptions just as energy transition demand rises, so there’s limited downside for prices.”

Policy Impact

Although the U.S. government temporarily suspended tariffs on some goods in July, leading to a pause in trading, the potential re-imposition of tariffs has resurfaced recently, and traders are racing to ramp up U.S. imports.

A portfolio manager summarized, “The combination of tight supply and arbitrage-driven demand in the silver and copper markets means that even if there is a 10-15% correction in the medium to long term, the fundamental bullish trend is likely to persist.”