Copper Hits 16-Month High as Supply Fears Grow; Silver Tops $50 for First Time in 40 Years
Copper prices surged to a 16-month high on Thursday amid deepening concerns over global supply shortages of the metal, which is vital to construction, manufacturing, and renewable energy industries.
Benchmark three-month copper on the London Metal Exchange jumped 3.1% to $11,000 per metric ton, nearing its record high of $11,104.50 set in May 2024. The rally follows a series of mine disruptions, including Freeport-McMoRan’s declaration of force majeure last month at its Grasberg mine in Indonesia, after a blockage of wet material cut off access to underground sections and restricted evacuation routes for workers.
Meanwhile, silver prices have hit their highest level in more than four decades as investors continue to pour money into precious metals. Spot silver climbed above $50 per ounce for the first time since 1980, when the infamous Hunt brothers attempted to corner the silver market.
In that episode, Nelson Bunker Hunt and William Herbert Hunt inflated prices by over 700%, hoarding physical silver and buying futures contracts with borrowed funds. Their speculative empire collapsed when regulators tightened lending rules, triggering a spectacular crash in silver prices — a cautionary tale now resurfacing as the metal once again captures global attention.
