He pointed out that while exchange inventories in China and the US appear tight, high prices are already slowing industrial demand and encouraging scrap supply. Even small countries are seeing increased silver recycling, which could help balance the global deficit.
On precious metals, Hansen clearly prefers gold over silver. “Gold is a monetary asset.” He explained that gold’s value is less sensitive to industrial demand and more linked to investor appetite for wealth protection. He expects gold to consolidate in the near term, but sees potential for prices to move towards $5,500–$6,000 per ounce later this year.
If the gold-silver ratio normalises towards its long-term average, silver could move closer to $100, though he does not expect it to sustain levels above that.
Copper prices have fallen to six-week lows, down nearly 15% from January’s record levels. Rising inventories across global exchanges and weak near-term demand are weighing on sentiment.
Hansen, said the market is facing a clear mismatch between short-term supply conditions and the longer-term demand outlook.
“We once again have this mismatch between short term developments and the longer term picture.”
According to Hansen, exchange-monitored inventories have crossed one million tonnes, leaving the market well supplied in the near term. This has triggered long liquidation rather than aggressive fresh selling.
While he believes the long-term electrification and energy transition story remains supportive for copper, Hansen feels the sharp rally seen earlier this year may have already set the high for 2026. Further highs could come in coming years, but only when supply tightens and demand strengthens meaningfully.
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