Where Gold and Copper Prices Go From Here -- and 3 Mining Stocks to Own Either Way

Commodity prices have experienced significant volatility in recent years, with gold prices peaking at nearly $5,600 per ounce in January before dropping by 26%. Despite this decline, gold may still have room to grow due to increasing fiscal deficits and geopolitical tensions. Central banks worldwide, particularly in Asia, Eastern Europe, and the Middle East, have been bolstering their gold reserves, with purchases more than doubling since 2022.

This trend continued in the third quarter, with central banks adding 321 metric tons to their reserves, the highest pace of buying since late 2024. JPMorgan Chase forecasts gold prices to rise to $6,300 per ounce by 2027.

In contrast, copper prices have been on the rise due to strong demand for infrastructure projects, such as data centers, power grid upgrades, and renewable energy initiatives. Analysts predict multi-year copper supply shortfalls, and the World Bank projects copper prices to increase by another 18% in 2027. Three mining stocks present opportunities for investors to benefit from these price increases: Freeport-McMoRan (FCX), Newmont (NEM), and Franco-Nevada (FNV).

Freeport-McMoRan, a leading copper producer, has a diverse portfolio of assets across North America, South America, and Indonesia. Its expertise lies in brownfield projects, which expand or modify existing mines, reducing capital intensity and enabling new production within a few years. Freeport's growth pipeline consists primarily of brownfield projects, and the company expects copper sales to rise by 20% in 2027 and 10% in 2028.

Newmont, the world's largest gold producer, also mines and processes copper, silver, zinc, and lead. With a massive scale, Newmont targets 5.3 million gold ounces annually and boasts an average sale price of $4,546 per ounce, a 29% increase from the previous year. Franco-Nevada, unlike traditional mining companies, provides upfront funding to mining companies in exchange for royalties and streams.

This business model shields Franco from operational cost inflation, as it is not directly responsible for fuel, labor, or equipment expenses.