The U.S. isn't discovering copper — it's stockpiling it.

Quietly, American warehouses have turned into a modern-day metal fortress, with 590,000 short tons of copper sitting in COMEX-approved storage — the highest level in more than 30 years.

This isn't a mining miracle. It's a trade-war chess move.

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A 300% Surge — Before The Tariff Hammer Falls

Copper inventories have exploded nearly 300% in just 12 months, now exceeding the combined stocks of the LME and Shanghai exchanges, according to CME data and Goldman Sachs.

The reason is simple: traders are front-running potential U.S. tariffs of 15%–25% on refined copper by rushing metal across the border today to avoid taxes tomorrow. The result is a local glut in America — even as the rest of the world tightens.

Why This ‘Fortress' May Be Temporary

This pile looks big, but it's a mirage in a structurally tight market.

Goldman warns that once tariff uncertainty clears (likely mid-2026), much of this metal could flow back out, creating a short-term price dip.

In other words, the fortress could quickly become a fire sale.

Chamath's Parabolic Bet Vs. The Stockpile

Chamath Palihapitiya calls copper the top trade of 2026, arguing that AI alone could demand 50,000 tons per data center, while mine supply takes 20-plus years to scale.

To him, today's inventory is "pennies" next to a projected 130% jump in data-center power demand by 2030.

Tariffs, he says, could turn copper into a national-security asset — and prices "absolutely parabolic."

Traders tracking this theme are increasingly using copper and copper-miner ETFs — such as the United States Copper Index Fund (NYSE:CPER), the iPath Series B Bloomberg Copper Subindex ETN (JJC) and the Global X Copper Miners ETF (NYSE:COPX) — as a liquid way to express the bet without owning physical metal.

What It Means For Investors

Short term: U.S. has a glut created by fear of tariffs.
Long term: World faces a famine driven by AI and electrification.

If you trade copper, the fortress is a warning.

If you invest like Chamath, it's just a speed bump on the road to a structural shortage.

Photo: Shutterstock

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