By Andy Home
Industrial users of the London Metal Exchange have greeted the launch of physical exchange traded funds for base metals with a mixture of fear and loathing.
By removing metal from the supply chain during a period of expected market deficit, could they become a price driver in their own right? Or will they prove to be a damp squib, a purely temporary by-product of “loose” monetary policy in the developed world?
In this presentation I look at the origins of the physical base metal ETF, its likely appeal to different types of commodity investor and how it might interact with the metal markets, copper in particular.
View a copy by clicking here
Andy Home is a Reuters Columnist. The opinions expressed are his own.
© Thomson Reuters 2011