Copper is becoming increasingly strategic to governments and industries as artificial intelligence, power-grid investment and defense spending increase demand for the industrial metal, investors say.
The metal — a key component in electronics, construction and transportation, and often seen as a barometer of economic activity — has outperformed gold this year, as the need to secure reliable supplies has intensified.
Copper has rallied 15.8% year-to-date, and is up more than 30% over the past 12 months. By comparison, gold futures have slipped 4.11% year-to-date, and are down 4.52% over the past 12 months. Spot gold is 4.89% lower over the past 12 months, and 4% down year-to-date.
Speaking to CNBC's "Squawk Box Europe," Ivanhoe Electric CEO Taylor Melvin said countries, regions and industries are increasingly focused on securing access to metals for national security, economic growth and technology infrastructure. Melvin said that shift has helped support copper prices.
"It's certainly a good time to be in copper mining globally, and specifically in the United States," said Melvin, whose Arizona-based mining and exploration company focuses on copper, gold, silver, nickel and cobalt.