Investors who believe the global economy has hit a bottom have piled into base metals exchange-traded funds (ETFs). Over the last few years, copper has gained a prominent place among risky assets, along with silver. Assets in ETF Securities' physical copper fund have nearly tripled to $47.5 million in the two weeks to January 24. At present, the ETF Securities physical copper fund has 6,013 tonnes of in storage. The recent SEC approval to JP Morgan’s physical-backed copper ETF has the potential to become very large, as it can store LME copper worth $499.8 million, equivalent to about 62,000 tonnes at $8,000 each. More, there are other ETFs waiting in the wings for SEC approval. This leads us to believe the investment-driven demand for copper is likely to strengthen the current uptrend.

 

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http://www.business-standard.com/article/markets/copper-rallies-on-strong-global-outlook-113021100383_1.html