Shop By
Category  
  • Silver
  • Gold
  • Platinum
  • Palladium
  • Copper
  • Coin Supplies
  • Specials
  • Sell To Us
  • IRA
  • Secure Storage
  • GC TV
  • News
  • Learning Center
  • About Us
  • Sitemap
Sign In or Create Your Account  
 
(813) 482-9300
or Live Chat
  • Silver
  • Gold
  • Platinum
  • Palladium
  • Copper
  • IRA Eligible Silver
  • IRA Eligible Gold
  • All Categories

JP Morgan Copper ETF, First in U.S., Gets Green Light - Reuters

Posted By: on Monday, December 17, 2012

By Josephine Mason, Reuters

U.S. regulators have finally approved JPMorgan Chase & Co's controversial plan to launch a copper exchange-traded fund backed by actual stockpiles of the metal, dealing a blow to end users who fear the product will wreak havoc on prices.

The U.S. Securities and Exchange Commission ruling ends a two-year effort by the U.S. bank to win regulatory support for its fund, which would effectively allow U.S. retail investors to trade physical copper easily for the first time.

It is also a defeat for consumers of the metal, which is used in plumbing and cooling systems. Since the fund will use physical copper cathode as collateral against shares of the fund, effectively removing a chunk of metal from the market, users fear it will affect supplies and inflate prices.

U.S. Senator Carl Levin, a Democrat from Michigan, also voiced his opposition to the plan. In July, Levin said the funds would cause a boom-and-bust cycle in the copper market.

Giving its backing for the product, the commission said it did not believe the fund would disrupt the flow of copper for immediate delivery.

"The Commission does not believe that the listing and trading of the shares is likely to disrupt the supply of copper available for immediate delivery, which is what (the copper fabricators) predict would increase the price of copper," it said in its ruling dated Friday and posted on its website on Monday.

Full Reuters article.

Take Advantage

Gainesville Coins is offering the 2012 1 oz American Gold Eagle at as low as $69.99 over spot. Gainesville Coins is offering the 1 oz Silver Buffalo Round at as low as $0.79 over spot.

Disclaimer: Gainesville Coins "Market Updates and In the News Section" provide our readers with features and analysis of the financial markets, and some of the factors that may be affecting market direction. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness, and this information should not be considered investment advice. Gainesville Coins provides these articles for informational purposes only, and they do not constitute a recommendation by Gainesville Coins to hold, to purchase, or to sell any investment.
Sign Up For Deals: