Mining stocks are suddenly high on the shopping list of many professional investors again. The background is a combination of sharply rising metal prices, tight supply situations for important raw materials and the impression that the sector could benefit from several structural trends at the same time. A significant turnaround, if not a turning point, can be observed here – away from a sector that has been avoided for a long time towards a sector that is once again perceived as strategically relevant in portfolios, according to a recent report.
Since the beginning of 2025, the MSCI Metals and Mining Index has reportedly gained almost 90%, leaving other popular segments such as semiconductors, global banks and large US technology stocks far behind. The run continued at the beginning of 2026, while topics such as robotics, electromobility and AI data centers are fueling demand for industrial metals and driving prices to new levels in several markets.
Copper as the key metal – but also silver, nickel and platinum in focus
The report highlights copper as particularly significant. The metal is considered central to the energy transition and has increased by 50% in the same period. At the same time, it is emphasized that attention does not end with copper: aluminum, silver, nickel and platinum are also viewed increasingly positively by analysts. According to the report, gold remains a special case within the commodity complex: despite successive record highs, the precious metal continues to be supported by concerns about US monetary and fiscal policy as well as geopolitical risks.
This broad movement across several commodities is an important point: it suggests – at least from the perspective of the market observers cited in the report – that the current strength is not exclusively driven by a single market. From an investor’s perspective, this increases the attractiveness of the sector, as different sources of income within the industry become possible.
From “unpopular” to “strategic”: Why perceptions are changing
The background is remarkable: In recent years, the sector had often fallen out of favor – burdened by volatile commodity prices and concerns about an economic slowdown in China, the most important metal consumer. According to the report, however, the mood is now changing, partly because fund managers interpret the signals from Beijing – support for the economy, including interest rate cuts – as a stabilizing factor.
Observers also point out that commodities such as copper or aluminum may be less strongly correlated with classic economic cycles than in the past. While these markets were long regarded as short-term “economic bets,” they are gradually developing into structurally justified investments. A second driver also comes into play in this context: the so-called “transition” logic, in which investors specifically seek participation in major topics such as AI, electrification and infrastructure development via metals and mining stocks.
According to the report, a consequence of this view is a change in trading on the market: pullbacks are bought more frequently – according to the motto “buy the dip” – because investors no longer see the sector as purely tactical, but as a portfolio element that is relevant in the longer term.
Positioning and valuation: More weighting, but not yet overheating?
A figure from Bank of America’s monthly survey shows how strong the shift already is: European fund managers are currently “overweight” in the commodity/mining stock sector by a net 26%. This is the highest level in four years, but is still below the level of 38% net overweight reached in 2008. The report interprets this as an indication that the trend is clear, but does not necessarily have the character of an extreme state from this metric.
At the same time, the valuation is mentioned as an argument: According to the report, the Stoxx 600 Basic Resources Index is trading at a forward price-to-book of around 0.47 relative to the MSCI World benchmark. This corresponds to a discount of around 20% compared to the long-term ratio of 0.59 and is significantly below previous cycle peaks of over 0.7. Morgan Stanley is quoted as saying that this valuation difference persists despite the increased strategic importance of natural resources.
M&A instead of new construction: “Buy over build” and the copper focus
Another focus of the report is the increasing importance of acquisitions. Companies are therefore increasingly preferring “buy over build” – i.e. the acquisition of projects or producers instead of lengthy, capital-intensive new developments. Ongoing or discussed transactions are mentioned, including Anglo American’s takeover of Teck Resources and considerations regarding a possible merger between Rio Tinto and Glencore.
From the perspective of the analysts quoted, the focus of this consolidation is primarily on copper: Many large mining groups continue to generate the majority of their profits with iron ore, which, according to the report, is suffering from the after-effects of the end of the last China-driven supercycle. This motivates the search for growth and portfolio optimization in other raw materials – especially in copper, which plays a special strategic role in the current environment. Freeport-McMoRan and Antofagasta are mentioned as examples of companies with greater “pure” copper exposure.
Dissenting voices: Rally speed as a risk factor
Despite the positive narrative, warning voices remain present. Bank of America has downgraded the sector in Europe to “underweight,” citing the risk of negative economic surprises. Another manager is quoted as saying that he has reduced his gold positioning for the time being because parabolic, non-linear price movements generally make him cautious. At the same time, it is emphasized that mining stocks could still appear “cheap” from this perspective – and that a renewed increase would be conceivable in the event of a pullback and persistently high gold prices.
The bottom line is a picture of a sector that is attracting more capital again due to strong performance, structural demand topics, M&A dynamics and comparatively low valuations – but accompanied by the question of how robust the tailwind will remain if economic or market expectations turn around in the short term.
