JP Morgan Copper ETF

[slvrbck]

So I was just curious what you guys thought about them still dealing w/ their silver manipulation suit and already planning on opening a copper manipulation haven. Don't know a whole lot about how ETF's are actually brought about but this seems down right rediculous. Any input appreciated.

[slvrbck]

Oh yeah, and what effect may this possibly have on our cents?

[exbingoaddict]

Depends how much "hot" money flows into the ETF. You could get a tail waging the dog effect. I.e. the ETF could move the price of copper. Just my two cents. I don't know what the size of the wordwide copper market is. Sure other people with more better know on the copper markets would have better insight.
No doubt about it, market manipulation or the attempts to do so, are a fact of life.

No matter what though, buying shares in a copper ETF doesn't seem prudent to me. However, shorting it as a hedge may be an interesting concept.

[HPMBTT]

Nope....no ETFs for me, thank you very much. Just cold hard physical PMs in-hand.

[silverflake]

I agree that holding physical PM's is the way to go. However if you hold SLV (the silver ETF) in one of your accounts, you can create some income from it by selling covered calls (as long as you own at least 100 shares). I sell out of the money covered calls against SLV and use the cash premium for other things (stocks and/or precious metals). By the way I am in no way a BIG investor. But even 200 shares of SLV selling out-of-the-money calls, for contracts that are 2 months out, 6 times a year can generate and extra $250-400 depending on the call premiums (and assuming SLV doesn't move so fast that you end up getting called out of your shares- it happened to me once). Just some information for those of us trying to squeeze an extra profit here and there. Do your own due diligence.