SEC approves first U.S. physical copper-backed ETF

[reddirtcoins]

http://www.mineweb.com/mineweb/content/ ... &sn=Detail

[creshka46]

I just read that. Do you think this will increase prices by creating more demand? That's what happened when they created the Gold and Silver ETFs earlier in the decade...

[JerrySpringer]

:D

http://www.mineweb.com/mineweb/content/ ... &sn=Detail

I read the link and I am still smarting over trying to reason with members on another message board. I should give up trying to convince people that stashing away copper cents is virtually a loss-less endeavor. Even my own brother has given up stashing away pennies and he is more of a prepper than I ever been or will be. On another forum, the talk about gold has cropped up. This board is a conservatively bent one, so gold gets treated like a speculative game more than stodgy bonds and index stock funds. I spoke up and suggested that it easy peasy to get copper at banks (most) right now and you can avoid the price swings that gold has and still own a physical metal and have its cash value, etc. intact. It is too heavy and too bulky to deal with for them. Hmmmm, I guess owning real estate and other sundry things is lighter on the wallet? Anyway, I give up trying to preach about copper. Knowing my luck, copper prices will go nowhere and all these 0.1 troy ounce disks I have will be relegated to spending at face value.......

Having a physical copper ETF should be interesting because I can see some of those guys who trivialized my suggestion of storing physical coins via cents think having a paper ETF as the way to own copper. Now, I admit, I keep SLV, PSLV and GLD in my portfolio every now and then but I see them for trading/hedge against the huge premium spreads of physical spot. Guess I am just ticked off that it seems so obvious the marketplace has created an inefficiency but people scoff at it. I think it will take copper cents going to 500% of face value before the public starts getting enthused about stashing them. The public likes round numbers. Saying a penny is worth 5 cents may click more with them.

Also, can't we all just start our own copper ETF? I guess that is why I am posting this. Just buy copper pennies and sit back and get your ETF capitalized at 40% of what the NAV of the JPM ETF will be.

[John_doe]

I just read that. Do you think this will increase prices by creating more demand? That's what happened when they created the Gold and Silver ETFs earlier in the decade...

I have read that etf's will add to volatility of commodities, but I do not know how much truth there is behind all of that.

[reddirtcoins]

Yes, I just don't see prices going south. If the yards are all worried about investors taking tonnage out of the market it seems to me this can only be good news for the price per lb. I'll be really laughing the day it's a nickel and the melt ban is off.

[JerrySpringer]

Yes, I just don't see prices going south. If the yards are all worried about investors taking tonnage out of the market it seems to me this can only be good news for the price per lb. I'll be really laughing the day it's a nickel and the melt ban is off.

Any market attention to copper may be a good thing. Awareness of it may boost people wanting to acquire CTUs. I guess depletion of copper pennies vis a vis participating bank availability would be a cornerstone/symptom of prices escalating. Like I have said before, it is a good time to stash away copper cents than ever perhaps.

( BTW, as an aside, have any of you RC'ers thought about doing a charitable thing in the future of say, donating a portion of your CTU's to a church or something brick and mortar like that if they pledge they will hold on to the copper and will not sell it until some stipulated time or price value happens? I wonder sometimes if maybe I could just create an endowment of my own that way which would make the time and effort I put into copper-sorting a gift that will reap nice returns for someone other than me someday. )

[ZenOps]

I can imagine it will increase volatility in spot price significantly. It will also allow JPMorgan to do exactly what they did with silver, manipulation, so beware potential huge gains and huge losses from this point on.

Only 61,800 tonnes represents 30% of the immediately deliverable stockpiles left. I can imagine someone might try to corner it. IMO it would be much easier to corner the nickel market as there really is no deliverable stockpile in Canada left (we are resorting to melting down all of our coinage to meet our contractual obligations, its probably been in backwardation for 6 years now, at least locally.)

Not too happy about the US printing up money to do it, but hey - everyone has to eat.

[scyther]

This is cool, but I'd rather see a zinc ETF. Zinc's a really good buy right now, right? That's what I've heard. I just don't know how to buy it. I'm not going to start hoarding zinc pennies, that's for sure...