JPMorgan - all ur base (metal) r belong to us ?

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plato1965's picture
plato1965
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JPMorgan - all ur base (metal) r belong to us ?

JP Morgan revealed as mystery trader that bought £1bn-worth of copper on LME

The American investment bank JP Morgan is the mystery trader that grabbed more than half the copper on the London Metal Exchange, The Daily Telegraph has learned.

 http://www.telegraph.co.uk/finance/newsbysector/industry/8180304/JP-Morgan-revealed-as-mystery-trader-that-bought-1bn-worth-of-copper-on-LME.html

 

 while we're on the topic of JPM..

 here's their new ad to counter Max Keiser's viral campaign...

 http://www.youtube.com/watch?v=wacq8CrFKNY

 

 

 

 

pinecarr's picture
pinecarr
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Re: JPMorgan - all ur base (metal) r belong to us ?

Good one, Plato1965; loved the video!

It will be interesting to hear what people have to say about the "JP Morgan buying up copper" article, too.

Ok, so I a have a totally naive,  potentially stupid question to ask in that regard, but I've got to ask it: Could cooper ever work as the back-up metal to a new currency, as opposed to a precious metal like gold or silver?  I don't know if it is rare enough to work.  But with China and others buying up gold, would a quick shift to copper to back up a new currency, while buying up huge amounts of physical copper, be a plausible option from their perspective?  Again, apologies ahead of time if this is a really naive question to ask, but I am curious to hear the answer. 

I did a quick search, and here's one potentially relevant reference from Zerohedge almost a year ago, "Is Copper The New Precious Metal?" at http://www.zerohedge.com/article/copper-new-precious-metal

Copper Currency Standard?

While India is trying to accumulate gold reserves, China is going one step forward by buying up industrial metals on a scale that appears beyond the usual commercial reasons. Some believe Beijing may have made a strategic decision to stockpile metal as an alternative to US Treasuries and dollar holdings as it safeguards China's industrial revolution, while the West may one day face a supply crisis.

Speculation of an ultimate “Copper Standard” also swirled when in March, 2009, Zhou Xiaochuan, the governor of People’s Bank of China, reportedly called for a world currency modelled on the "Bancor”. The Bancor was to be anchored on 30 commodities - a broader base than the Gold Standard.

 -Or the situation with JP Morgan buying up so much copper may be just as straightforward as the article states, that they are trying to get ahead of a new copper etf that they are going to launch...

plato1965's picture
plato1965
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Re: JPMorgan - all ur base (metal) r belong to us ?

 I don't know if it is rare enough to work.

 I'd rephrase that as.. it's probably too bulky to work.. bank vaults would need to be err.. HUGE!  Not to mention the costs of transport.

 

 e-copper ? Maybe James Turk should register coppermoney.com ... *grin*

 I think it shares (with silver) the likelihood of increasing (rapidly) in value with time.. as ores become more dilute, and net energy available falls. Whether or not JPM has supressed Silver prices, I'd argue that plentiful cheap energy has done a similar job for most of the last century... Once the peak is understood... the paradigm shift in commodities pricing could be.. enormous.

Most of recent human history has been expansionary..  when the game shifts from exploit and consume a.s.a.p... to save and conserve..

Johnny Oxygen's picture
Johnny Oxygen
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Re: JPMorgan - all ur base (metal) r belong to us ?

I will not question...must not think...find CSI re-runs...

Travlin's picture
Travlin
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Re: JPMorgan - all ur base (metal) r belong to us ?
pinecarr wrote:

Could cooper ever work as the back-up metal to a new currency, as opposed to a precious metal like gold or silver?

I don't see how Pinecarr.  A huge amount of wires and pipes would get ripped out and flood the market.  I'd replace my copper water pipes with plastic for a nice profit.

Travlin 

pinecarr's picture
pinecarr
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Re: JPMorgan - all ur base (metal) r belong to us ?

Thanks for the answers, folks, and for not making me feel foolish for asking (tho' I still do a liitle bit on my own anyway!)   I think I am getting so hypervigilant and jaded that I'm looking behind every big or notable market-event for an ulterior motive.  (...Maybe I just picked the wrong one here!:) 

Travlin's picture
Travlin
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Re: JPMorgan - all ur base (metal) r belong to us ?

I think a lot of us are feeling that way these days.

Travlin 

plato1965's picture
plato1965
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Re: JPMorgan - all ur base (metal) r belong to us ?

A huge amount of wires and pipes would get ripped out and flood the market.  I'd replace my copper water pipes with plastic for a nice profit.

 Really ? Would you melt down a silver cutlery set for spot price ?

 Why not leave them as inflation-beating "savings", and keep the benefits of copper piping.. ? (anti-bacterial, durable)

 

 

 The real problem with an escalating copper price is already happening.. theft..  thieves have been ripping cables (sometimes live..) to sell for scrap... my local train service has had a few cancellations this year due to it..

 http://www.guardian.co.uk/uk/2010/sep/28/railway-crackdown-copper-theft

 Best solution is to strictly control scrap merchants.. photo + identity checks for anyone selling to them..  -  already happening.

 http://www.kkbc.com/coppertheft091409.htm

 

SteveW's picture
SteveW
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Re: JPMorgan - all ur base (metal) r belong to us ?
plato1965 wrote:

 Really ? Would you melt down a silver cutlery set for spot price ?

 

My mother-in-law was horrified when, mostly in jest, I suggested we do that with the wedding present she had given to us as silver hit $50 in 1980.

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yobob1
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Posts: 132
Re: JPMorgan - all ur base (metal) r belong to us ?

If JP Moran took down half the inventory in anticipation of an ETF, what happens to "demand" when they create the ETF? 

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