Copper Shortages Boost Silver and Gold Rally

The global copper market is facing a looming shortage after a string of supply disruptions—including flooding at Kamoa‑Kakula, an accident at Codelco’s El Teniente, protests at Constancia and a deadly mudslide at Grasberg—that analysts say have pushed the market into an earlier and larger deficit. The Grasberg mudflow alone is estimated to remove about 591,000 tonnes of output and has helped lift copper to its highest level in over 16 months as banks revise up price forecasts. Precious metals have also rallied, with silver jumping roughly 19.4% in September to about $48.7/oz (and record levels in rupees) and rising about 68% year‑to‑date, while gold hit record retail levels in India at roughly ₹119,000 per 10g on safe‑haven flows and rate‑cut expectations. Strong industrial demand—notably from solar, electronics and electric vehicles—alongside persistent supply tightness and investor inflows is cited as the main driver of silver's gains. Analysts warn the world needs roughly 1 million tonnes of new copper production a year to meet demand, making current shortfalls especially bullish for copper prices. Indian consumers are shifting toward lightweight and lower‑karat jewellery amid bullion volatility and high prices.