JP Morgan Handed Dominion Over US’s First Physical Copper ETFs
JP Morgan has won regulatory approval, despite across the board fraud that seems to be endemic to their overall business strategy, for a US exchange-traded fun backed by physical copper, which some industrialists claim could disrupt the market. They must be familiar with the trials and tribulations experienced in the silver market. The implication of a JP Morgan manipulated copper fund is increased volatility across the copper market, effecting not only price but manufacturing as well. Further, these moves are made as calls for a US citizenry imprisoned by ravaging inflation begin increasingly to hoard copper pennies and nickels for their copper content.
The rule change by NYSE Arca Inc. to list JPM XF Physical Copper Trust faced opposition by industrial copper consumers such as AmRod Corp., Southwire Co., and Encore Wire Corp. and hedge fund RK Capital LLP, citing that funds backed by copper would mean less metal available for manufacturing, thus creating shortages and price spikes. Senator Carl Levin said that approval of the rule change is “a blow to American businesses and consumers that rely on copper,” and that Congress should revisit the decision.
A study released last month by an SEC division stated that asset flows to/from exchange-traded products do not effect the price of the underlying commodity. The copper-users group disagreed with the study’s findings.
From the perspective of doing business, the implications of the JP Morgan controlled fund is a lack of ability to anticipate prices, wilder price swings, shortages and an increased veil of mystery cast over the supply of copper.