Banking, finance, and taxes
SEC Gets Some Pushback on Decision to Allow Copper ETF
Published:
Last Updated:
The traders and users have not given up. In a 37-page letter, a U.K.-based copper trader and four U.S. end-users of copper have challenged the SEC’s decision:
[W]e believe the Commission’s findings that the listing and trading of shares in the JPM Physical Copper Trust will not have a material impact on the supply of physical copper available for immediate delivery is not based on substantial evidence and is therefore arbitrary and capricious.
The main point of the petitioners’ letter is that there is a very good chance that a fund backed by physical copper will result in the removal of substantial quantities of the red metal from warehouses in London and New York and “that such removal will obviously drive up the price of copper … and create shortages of supply.”
There is at least some evidence to back up the letter’s claims. Funds backed by physical gold have piled up significant amounts of the yellow metal and have contributed to the rise in the price of gold.
If a fund backed by physical copper is allowed to go forward, it will no be long before funds backed by physical quantities of other base metals are proposed and, presumably, approved. It is a little difficult to see how these funds won’t put upward pressure on prices for the base metals that are used to make everything from cars to cellphones.
The letter to the SEC is available here.
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.