Posted on 12/04/2010 10:23:38 AM PST by FromLori
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.
The $1.5bn (£1bn) trade was described in the LME's daily update as "between 50pc and 80pc" of the 350,000 tonnes in reserves. This pushed up the price for the immediate delivery of copper to $8,700 – its highest level since the financial crisis in October 2008.
A high premium on the spot copper price normally reflects fear of a shortage of the metal, which is in hot demand across the world as a vital component in a mass of products from electrical gadgets to wiring.
A source close to the situation said that JP Morgan had bought the copper contracts, adding that amount is closer to the "lower portion of the range" disclosed by the LME.
(Excerpt) Read more at telegraph.co.uk ...
Related
As copper price rises, rumours abound of market manipulators
They weren’t manipulating the market in metals. JP Morgan is just getting into the wiring business. Move along. These aren’t the droids you are looking for.
“Copper is used in wiring cars, with electric vehicles needing twice as much wiring as a petrol vehicle.”
Let me guess: this is legitimate hedging activity. For its massively manipulative short silver position.
They are going to use it for an EFT. So the customers who buy shares in the EFT will be the owners of this copper.
A physical metal EFT is rather a strange beast, since as long as the shares are outstanding, the metal cannot be sold to end users.
Alternatively, the Chinese are creating a copper bubble and are hoarding the cheaper metal.
If the market is controlled, the speculation and hoarding might end
None.
Thank goodness we bailed out these banks, otherwise who else is big enough to pull this crap?
How can the market be controlled? Anyone with money can buy physical copper and hang onto it.
That’s a good question do you count the money the Fed printed that $1 trillion of excess reserves — money that the Fed has created that banks could lend immediately but are just sitting on because they earn interest on it?
So, we were right yesterday when so many suspected Soros was behind the buys. Soros holds a large stock of JP Morgan.
Forgot to add that a few years ago he was tapped at managing JP Morgan’s London offices. Coincidence? I don’t think so.
http://www.independent.co.uk/news/business/news/jp-morgan-lures-soros-722532.html
Well you taught me something I didn’t know I must have missed that thread or that part of it anyway lol I didn’t know Soros owned a lot of JP Morgan. I just knew JP Morgan owns a large part of obama.
Connecting the dots.
ping
At this point, it’s ALL taxpayer money. Because those SOBs wouldn’t be in business without our dollars. I hope JPM is the Wikileak’s victim in January.
Could this be the scenario?
1. Central Banks print money to inflate the economies and to payoff the entitlements enacted by the politicians.
2. Big Banks buy large amounts of copper and other commodities to increase prices and create an inflationary environment.
3. The Public believes that inflation is on the way and starts buying and hoarding commodities.
4. Central Bankers and Politicians are now happy because they have inflated their way out the problems they created in the first place. The Public that bought commodities see huge profits and are also happy. The Public that does not have a clue as to what is going on simply waits for the next meager handout from their politician in exchange for their vote.
Isn’t it nice when everybody wins??
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