JPMorgan Wins Approval for First U.S. Physical Copper ETF

Blythe and Jamie appear to be tying up loose ends, as JP Morgan has reportedly won regulatory approval for the US copper ETF, the JPM XF Physical Copper Trust.


JPMorgan Chase & Co. (JPM) won regulatory approval for the first U.S. exchange-traded fund backed by physical copper, which some industrial users said may disrupt the market.

The proposed rule change by NYSE Arca Inc. to list JPM XF Physical Copper Trust was approved, the regulator said in an order on its website dated Dec. 14. BlackRock Inc. (BLK) and ETF Securities Ltd. also have said they plan to start physically backed ETFs for industrial metals in the U.S.

A group of industrial copper consumers including AmRod Corp., Southwire Co. and Encore Wire Corp. (WIRE) and hedge fund RK Capital LLP opposed the plan, saying funds backed by copper would leave less of the metal available for manufacturers, creating shortages and driving up prices. Senator Carl Levin, a Michigan Democrat who in July had advised rejecting the ETF, said in a statement today that the approval is “a blow to American businesses and consumers that rely on copper,” and that Congress should review the move.

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Comments

  1. I hope the less than dynamic duo get the “debilitating disease of the month” subscription for christmas.
     
    I assume the copper will be stored in the same place that SLV stores there. In the imaginary land of middle earth. IT will be guarded by unicorns.
     

  2. Buy Copper—Crash J.P. Morgan!!

  3. This is interesting. The coin shop where I buy all of my phyzz started selling 1oz copper rounds a couple of months ago.  They are $2.00 each, and I do realize that copper goes for around $3.00 a pound on average, meaning that if I bought a pound of copper rounds (16 rounds) I would pay $32.00 for them, and their melt value would be $3.00 give or take.  Having said that, with this new ETF, does anyone think that buying these copper rounds might be a good idea?

    • No, if you want copper rounds then save the pre-1982 cents (if you are in the US) and more than double your money instantly. They are now worth .0236 cents each in copper. The melt ban will be lifted in the near future and they sell for 1.6 cents each on ebay in quantity right now. They are also the best thing to have for change when you start using silver 90% coins as barter, and are real money issued by the mint, as per the Constitution. Bank rolls usually contain about 20% Cu cents depending on how many people in the community are pulling them out (see Gresham’s Law). I have already got over 300 rolls and constantly adding to them every chance I get. Some say the time isn’t worth it, but I do not agree, it can be fun and I have also accumulated over two rolls of wheat cents from doing it over the years. I also save Nickels that contain 75% Cu and 25% Ni. I still look through them and occasionally find a 1940/1950 era one worth .35 cents or so, and even more rarely find a war nickel (1942-1945) that contains 35% silver. I am working to accumulated $1000 spot value between the two. I also save scrap Cu and have a few hundred pounds of it.

    • Well, I suppose. Like the farmer and his son that sold watermelons for $1.00 each and they paid $1.25 each to groww them.
      They eventually had to buy a bigger truck!

  4. History shows copper has been used as currency and money also:
    “Since the beginning of civilisation, copper has been used to make coins for currency. The ancient Romans recognised the value of this material and used a wide variety of copper coins. Centuries later, the Gold Standard gave way to the Copper Standard for coins of all values due to copper’s long-lasting properties. Even today, when consumers are surveyed about copper, the most popular association comes with currency and coins. Anglo-Saxon countries like England and the United States have long used copper for their most popular coins, such as the penny.”
     
    And China used copper currency as well:
    “”In 1085, the Song government is estimated to have minted approximately six billion copper coins.”
     
    Regardless, the goal of the EFT is to create more “paper copper”, just like they have done with “paper gold” and “paper silver”.  It is a means for them to increase their price manipulation schemes.

  5. Oh Boy, Let’s all get screwed again by Jamie Dimon! Can’t wait!

  6. http://www.gurufocus.com/term/Preferred+Stock/SCCO/Preferred%2BStock/Southern%2BCopper%2BCorporation. Been purchasing copper for years. If people are willing to die to steal it. Has to be worth something. Warren Buffet bought Southern Copper Too. 

  7. I doubt they would want to do this if they didn’t think that copper was about to explode in price like the PMs. They can’t have Cu selling for more than Ag, can they!  Someone might take notice and accuse JP Morgue of manipulation. Or wonder how a copper cent could be worth more than a fiat bill! Of course We All already know that it is, don’t we! We also know why it is! :-) ! Keep Stacking!

  8. I hate to see what going to happen with all those empty Forclosed houses around here where I am when Copper starts moving up. We had a rash of breakins when copper was up. Now I know we all will need a gun. Lol

  9. do you ever wish you could go back to 1965 and grab up every dime, quarter and half dollar you could? here is your chance only this time its copper. as the treasury is doing away with the penny and the nickle, this etf just like gld and slv will be used to suppress the price of this monetary metal. we can stack it now for below melt, watch it slowly move up as the etf attempts to keep the price down, then watch it explode when china backs the yuan with gold and the dollar crashes. the nixon signing statement warning not to hoard silver as the exchange stabilization fund would be used to manipulate the price of silver down in order to defend the dollar, this copper etf will be used to make the dollar look better then it realy is. people would freak if they saw the melt value of their nickles equal the price of a whole paper dollar or higher. the removal of the penny and nickle is the removal of the last monetary metal, copper, from our monetary system so that there will be no escape for the average guy when the dollar collapses and we are forced onto a purley digital currency. as the miners are destoyed by higher fuel prices, increased regulation, lower ore grades, and suppresed prices, physical copper will be harder to obtain, just like silver. 

  10. I was thinking about buying maybe 2,000 lbs of copper ingots, storing them in the garage or offsite storage unit.  Cost?  A little less than $8,000.  Then again, trading them in at the LCS might prove to be a little difficult.  Trading them to a metals dealer means alot of heavy lifting. Buying pennies and nickels is still a great idea.

  11. @AGXIIK Just buy Copper Rods and when you need change just cut a piece off. Lol

  12. The key wording is “an ETF backed by copper” they left out and leveraged 1000:1 so there won’t be that much copper off the streets. It will just give JPM an outsize position in another metal and let them manipulate the price.

  13. Slice off a round of copper. That is a great idea, or so it seems to my delusional state of mind. I like baloney;  Copper baloney. 
    Just like JPM 
    They’ll be slicing copper baloney by the ton.  
    Just when it seems that we have the manipulated markets figured out, the uber fraudsters at JPM get to play a copper scam. I thought copper had a PhD in economics?  It appears that copper has bleep for brains. 
    At this rate JPM is going to be involved in just about every commodity of importance, and with the means, morals and mindset to manipulate them all.  They also handle the SNAP and EBT cards.  Now there is a market to mismanage.  It’s one thing to play graba** with precious metals.I  t’s a whole other matter to control the food supply of nearly 50 million people.
     I fear the day when TPTB given JPM the order to flip the EBT kill switch.  The folks at the receiving end will find out that their failure to watch who provides them the means to buy food  has shut them off.  
    The government won’t need to ring fence the inner cities and urban areas.  They just turn off the SNAP cards.  With the free cell phones they dail up folks and tell them what’s what.
     Kind of a reverse 911 with groceries.
     Wanna eat? 
    Then comply. 
    Pretty simple way to control 15% of the population AND their families.

  14. Just another smoke an mirrors trick for the toilet paper scam. Wheres the money an the comodities an  who actualyl owns them? The should out law E.T,F . There no good for the price rise and  only can take the price down. My favorite meaning of an eft is ELECTRONIC TOILET FLOAT.Its all down the crapper when they do this. All it is is a big bank for the gov to steal from when they want the price to go down they just borrow other peoples assets there an sell. moving the price where ever they want is my opinion.

  15. JPMorgan Chase & Co. (JPM) won regulatory approval for the first U.S. exchange-traded fund backed by physical copper…”

    Yeah.  As if their pet lap-dog regulators wouldn’t give their masters “permission” for anything they want!  lol
     

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