Recently, while watching the markets, I found that the recent rally in copper and silver is quite intense. In mid-May, silver once surged over 7%, reaching over $86 per ounce, and copper prices also soared to $13,960 per ton, almost approaching historical highs. The logic behind this is actually quite clear—Peru's energy crisis, as one of the top three copper and silver producers globally, with output accounting for over 10% of the world's supply, directly constrains the supply. Coupled with the explosive demand from AI data centers, both copper and silver are essential commodities, so when supply and demand tighten, prices naturally rise.

Since the beginning of this year, copper prices have increased by more than 10%. Although there was a period of volatility due to geopolitical fluctuations, the ongoing tightness on the supply side and rising industrial demand have kept the copper rally relatively steady. Citibank analysts believe that energy transition, AI military demand, and supply constraints—these three factors—can help copper prices resist cyclical risks. They see a possibility of reaching $15,000 by the end of the year.

Silver's performance has been even more impressive—up 15% since May, far outpacing gold's 2% increase. From the start of this year to now, silver has risen 18%, while gold has only increased 8%, showing a clear gap. The core reason for this rally, according to analysts, is the upgrade in industrial demand, especially in AI chips, connectors, and optoelectronic devices. Silver consumption has grown beyond expectations, making the supply-demand situation even tighter. Technically, if silver can hold above April's high, the next target is $90, with a chance to return to March's over $96. UBS strategists even predict it could reach $100 per ounce by the end of the year, as more investors see silver as a higher risk-reward alternative.