Mining stocks are posting record gains, outpacing the tech sector. The reason is an acute shortage of metals necessary for artificial intelligence, electric vehicles and green energy.
The MSCI World Metals and Mining Index is up nearly 90% since the start of 2025, significantly outperforming the returns of tech giants and the banking sector. Analysts note that the mining industry is experiencing a renaissance, transforming from a peripheral asset into a mandatory element of investment portfolios.
The key driver was unprecedented demand for metals, driven by two global trends: the energy transition and the boom artificial intelligence. Copper, critical for power grids and electric vehicles, has risen in price by 50%. Prices for aluminum, silver, nickel and platinum are also rising. Gold continues to strengthen amid geopolitical uncertainty and the Fed’s loose monetary policy.
Fund managers are actively increasing the share of mining assets in their portfolios. The sector, which was once considered cyclical and dependent on the growth rate of the Chinese economy, is now perceived as a structural investment. Metals have become less dependent on market fluctuations, since their consumption is secured by long-term decarbonization programs and development of digital infrastructure.
Despite strong growth, the industry still looks undervalued. The Stoxx 600 Basic Resources industry index is trading at a significant discount to the global average. This is happening against the backdrop of market consolidation: large players such as Anglo American and Rio Tinto are actively buying assets, focusing on copper. Copper supply shortages are expected to continue and gold prices could reach $5,000-$5,400 an ounce by the end of 2026.
The mining sector has entered a new phase of growth driven by fundamental changes in the global economy. Investments in metals are becoming a strategic choice for those who want to profit from the development of green energy and artificial intelligence technologies.
Source: MINING.COM
Image: Bloomberg
