A smart play betting on inflation and economic improvement...?
Or an attempt to artificially maintain price above $3?
Could Hunt Brothers Silver Story Happen Again with Copper?
Nelson Bunker Hunt, R.I.P.: The Myth of the Hunt Brothers' "Scheme to Corner the Silver Market”
This firm has more than half the copper in LME warehouses
Copper prices have mostly stayed above the psychologically important $3 per pound-level and The Wall Street Journal (WSJ) might have found the reason for that. On Sunday it published that, “a single buyer has snapped up more than half the copper held in London Metal Exchange warehouses.”
According to the report, such firm is London-based hedge fund Red Kite, but a position of this size is remarkably large in the context, not only of the LME, but overall global copper markets in a slowing economic environment.
“There’s no reason for anyone to be holding 70% of the stocks of the commodity,” Jessica Fung, head of Commodities Metals at BMO Capital Markets told the WSJ.
Edited by Rogerdodger, 29 October 2014 - 08:59 AM.
