N※N

Forget Stocks for 2026: Why Copper and Nickel Are the New Goldmines

  //stocks-investing.news-articles.net/content/202 .. why-copper-and-nickel-are-the-new-goldmines.html
  Published in Stocks and Investing on Wednesday, December 24th 2025 at 8:30 GMT by The Motley Fool

Forget Stocks for 2026—Why I’m Betting on Two Metals Instead

An in‑depth look at why the article’s author has shifted his investment focus from traditional equity markets to the raw materials that will power the green economy of the next decade.

1. The Premise: A Long‑Term Pivot

In a compelling piece published on MSN Money, the author challenges a common belief that equities will remain the primary driver of wealth creation in the coming years. Instead, he argues that the 2026 horizon will be dominated by a “green shift” that will put raw metals—specifically copper and nickel—at the heart of global growth. His thesis rests on a combination of macro‑economic indicators, supply‑chain constraints, and the inevitable rise of electric vehicles (EVs) and renewable‑energy infrastructure.

2. Why Copper? The Backbone of the Clean‑Energy Revolution

2.1 Supply Constraints and Geopolitical Risks

Copper’s role in the EV supply chain is irreplaceable. Every electric car requires roughly 30–40 kilograms of copper—three to four times the amount found in a gasoline vehicle. The author cites Bloomberg’s latest commodity outlook, noting that global copper mine production is expected to plateau in the next four years, while demand will continue to climb. He highlights that China—currently the world’s largest copper consumer—has imposed stricter environmental regulations on new mines, tightening the supply curve.

2.2 Rising Demand Beyond EVs

Copper is also essential for solar panels, wind turbines, and the electric grid infrastructure needed to host renewable energy. The article points to the International Energy Agency’s (IEA) 2025 projections that copper demand could surge by 30% through 2026, driven by both the EV boom and the expansion of high‑voltage substations in emerging markets.

2.3 Price Trajectory and Historical Performance

Historically, copper prices have outpaced inflation in periods of rapid industrial expansion. The author shows a graph of copper spot prices over the past decade, illustrating a 120% increase between 2012 and 2022, with a projected 20% year‑on‑year rise through 2026 if current demand trends continue. For investors, this translates into a “commodity play” that offers downside protection during equity market sell‑offs, given that copper’s price is largely insulated from corporate earnings cycles.

3. Nickel: The Silent Powerhouse of Battery Technology

3.1 Battery Chemistry and Future Trends

Nickel’s relevance to the battery market is growing, especially with the shift toward higher‑energy‑density cathode chemistries like nickel‑cobalt‑manganese (NCM) and nickel‑cobalt‑aluminum (NCAL). The article references a Reuters interview with a battery chemist who notes that the next generation of lithium‑ion cells will use up to 75% more nickel per kWh than current cells. This shift is projected to drive a 40% increase in nickel demand by 2026.

3.2 Geopolitical Landscape

While copper’s supply bottleneck is largely driven by China, nickel’s supply is more diversified, but still vulnerable to geopolitical dynamics. The author points out that Russia is a major nickel producer, and that any sanctions or trade restrictions could tighten global supplies. Yet, the diversification of mining projects in Canada, Australia, and Indonesia provides a cushion that mitigates extreme volatility.

3.3 Historical Price Performance

Nickel’s price history is characterized by sharp swings, but the article highlights a sustained bullish trend over the last six years. Between 2018 and 2024, the price of nickel surged from $13,000 to $20,000 per tonne—an 54% increase. Given the anticipated rise in demand and the limited capacity for new mines, the author argues that a similar uptrend is likely to continue through 2026.

4. Investing in Copper and Nickel: Practical Paths

4.1 Commodity ETFs

The article explains that investors can gain exposure to copper and nickel through exchange‑traded funds (ETFs) that track either the spot commodity or the mining sector. For copper, the author recommends the United States Copper Index Fund (CPER), which holds a basket of copper‑mining companies, while for nickel, he suggests the Nickel & Precious Metals ETF (NICK), which tracks a mix of nickel‑mining stocks.

4.2 Direct Physical Purchase

An alternative discussed in the article is the purchase of physical commodities, especially for those seeking to avoid the management fees associated with ETFs. The author advises that investors carefully vet dealers and consider the logistics of storage and insurance.

4.3 Diversification through Mining Stocks

The author notes that mining stocks offer the dual benefit of commodity price exposure and equity upside if the companies successfully navigate operational risks. He highlights several names: BHP, Rio Tinto, and Vale for copper, and Norilsk Nickel and BHP’s Nickel Mine for nickel. He cautions that individual mining stocks can be more volatile than ETFs, and suggests a balanced approach that includes both.

5. Risks and Caveats

5.1 Market Volatility

Both copper and nickel are known for their volatility. A global economic slowdown, a sudden surge in interest rates, or geopolitical shocks can depress commodity prices, impacting investor returns. The article recommends setting stop‑loss orders and maintaining an exit strategy.

5.2 Regulatory and Environmental Constraints

Mining is increasingly subject to regulatory scrutiny. Carbon‑pricing mechanisms, stricter land‑use regulations, and environmental activism could increase operating costs for producers, dampening supply and affecting prices.

5.3 Currency Exposure

Commodity prices are denominated in U.S. dollars. Thus, a strengthening dollar can suppress prices even if demand remains strong. Investors need to monitor FX trends and consider hedging if they hold large positions in foreign‑currency denominated mining stocks.

6. Conclusion: A Metal‑Focused Forecast for 2026

The article concludes that the combination of relentless demand from the electric‑vehicle sector, the expanding renewable‑energy infrastructure, and constrained supply will make copper and nickel standout investment assets for the next few years. By moving away from the volatility of traditional equity markets and toward the structural fundamentals that will shape the next decade, the author believes he can achieve superior risk‑adjusted returns.

While the author acknowledges that commodities come with their own set of risks, he remains confident that copper and nickel will deliver a “steady upward trajectory” in line with the broader green transition. For investors willing to look beyond the familiar and embrace the raw materials that will fuel the world’s future, the article offers a clear, data‑driven roadmap to consider a portfolio pivot in 2026.