Mining Stocks Surge as Copper, Silver and Nickel Lead Rally; Company Anglo American and Company Rio Tinto Among Buyers

Mining stocks have returned to center stage, powered by a broad-based rally in base and precious metals. Since the start of 2025 the MSCI Metals and Mining Index has surged nearly 90%, far outpacing sectors such as semiconductors, banks and big tech. This move is not speculative froth: fund managers on Wall Street are increasing exposure because global demand for metals is accelerating while supply struggles to keep pace.

Copper is the clear leader, up roughly 50% year to date. The metal’s role in energy infrastructure, electric vehicles (EVs) and data centers for artificial intelligence makes it a structural demand story rather than a cyclical blip. But copper is not alone: silver, nickel, aluminum, platinum and even gold have firmed as investors seek protection from loose U.S. monetary policy and rising geopolitical tensions.

Institutional behavior has shifted. Long ignored by growth-biased portfolios, miners are now viewed as essential anchors. Mr. Dilin Wu of Company Pepperstone says miners have ‘quietly gone from a boring defensive sleeve to an essential portfolio anchor, one of the few sectors positioned to catch both changing monetary policy and a shaky geopolitical setup.’ European fund managers now show a net 26% overweight in mining, the largest in four years.

Valuations still look compelling, supporting further merger and acquisition activity. The Stoxx 600 Basic Resources Index trades at a forward price-to-book ratio of about 0.47, below its longer-run average near 0.59 and well under past peaks above 0.7. Mr. Alain Gabriel of Company Morgan Stanley highlights that this valuation gap persists even as natural resources grow more strategically important.

Rather than invest heavily in new mines, many producers prefer buying existing assets. Acquisition talk is heating up: Company Anglo American is pursuing Company Teck Resources, and there is market chatter about Company Rio Tinto teaming with Company Glencore. Miners are seeking scale and higher-quality portfolios, with copper-rich assets the primary prize.

Not all voices are uniformly bullish. Company Bank of America has warned of downside risk if macro surprises materialize, prompting a European sector downgrade. Mr. Nick Ferres of Company Vantage Point notes caution around parabolic moves: 'I get concerned when the price of any asset goes parabolic,' he says, while also acknowledging miners remain attractively priced.

Research houses remain broadly constructive on supply-demand dynamics. Company Bloomberg Intelligence projects a persistent copper deficit for the year, potentially deeper than 2025, while Company Goldman Sachs has floated a bullish target for gold near $5,400 by end-2026. Mr. Gerald Gan of Company Reed Capital says, 'The upside drivers for commodities are now more powerful and more diversified,' and his firm plans to raise mining allocations.

Where does this leave investors? The combination of structural demand for electrification and constrained new supply supports a multi-year thesis for base metals and selected precious metals. Stocks still look inexpensive on a relative basis, leaving room for further gains, particularly if M&A accelerates. For pure copper exposure, market participants often point to names like Company Freeport-McMoRan and Company Antofagasta, though many diversified majors are rotating away from iron ore dependence and toward copper.

Investment takeaway: This is a sector where macro, geopolitical and technological trends converge. Investors should weigh the structural demand case, monitor valuation-sensitive M&A activity, and consider tactical exposure while managing the risk of abrupt economic slowdowns. For readers who want regular updates, subscribe to the site’s newsletter for timely analysis and trade ideas.