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.
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.