J.P. Morgan to Launch Copper ETF

JP Morgan wants to list a copper ETF. The fact that they also hold huge short positions in the silver market, a market under investigation for price manipulation, is certain to raise some concerns about its true intentions.

Any manipulation against the trend, however, is destined to fail. Secular demand and devaluation, not manipulation, has been driving up the price of copper (and silver). A copper ETF will introduce the commodity to a new class of investors. This will certainly make the copper bulls happy.

J.P. Morgan Chase & Co. will launch a physical copper exchange-traded product, according to a filing made late Friday to the U.S. Securities and Exchange Commission, marking a further bullish stamp of approval for the metal as prices approach new all-time highs. A start date was not given in the filing.

The product aims to offer institutional and retail investors a way to participate in the physical copper market through an investment in securities without having to buy and store the metal themselves. The logistics of transporting and storing physical copper will be dealt with by J.P. Morgan's warehousing firm, Henry Bath Group, and the related expenses will be built into the price of the shares.

Source: online.wsj.com