LMEWEEK-UPDATE1-Goldman, BlackRock decline comment on copper ETP

LONDON, Oct 13 (BestGrowthStock) – U.S. bank Goldman Sachs (GS.N: )
and the world’s largest asset manager, BlackRock (BLK.N: ),
declined on Wednesday to comment on market talk that they were
planning a copper exchange-traded product.

Industry sources said the launch — expected to start with
50,000 tonnes of copper — had initially been planned for this
week, but was pulled because Goldman and BlackRock were
pre-empted by UK-based ETF Securities on Monday. [ID:nLDE69A0I5]

Speculation about industrial metals ETPs has been rife in
the lead up to the London Metal Exchange Week events this week.
ETF Securities said that it will introduce physical
exchange-traded products for copper, aluminium, zinc, lead, tin,
nickel and a basket of the six major base metals. However, it
has no date, as yet, for the launch.

Meanwhile, Antofagasta Minerals (ANTO.L: ) CEO Marcelo Awad
told Reuters the company had been approached by investment banks
to sell copper to back exchange-traded products, in a sign of
investor appetite for physical metal. [ID:nLDE69B2AF]

“The demand is clearly there. Many customers want to take
part in the base metals price rally. There are still not that
many attractive alternatives out there on where to invest your
money, given the very low interest rate environment,” said
Daniel Briesemann, commodities analyst at Commerzbank.

“At least in the short term, these products could see high
inflows and be a success. We will see if this can be sustainable
in the longer term,” he added.

Deutsche Bank (DBKGn.DE: ) said exchange-traded products
backed by copper could hold 300,000 to 400,000 tonnes of metal,
which is roughly 2.2 percent of global refined copper demand.

Exchange traded commodity products have become popular with
investors looking for exposure to physical metal that has
rallied on expectations for tight supply. The instruments are
listed on exchanges and are normally very liquid.

Benchmark copper (CMCU3: ) has hit its most expensive in more
than two years this week above $8,400 a tonne, up almost 14
percent this year.

Barclays Capital said in a research note the global
exchange-traded product market is now worth $119 billion, having
risen by $2 billion in August alone.

Barclays said more than 80 percent of that total is tied up
in precious metals, where gold is the dominant investment
(Additional reporting by Melanie Burton. Reporting by Pratima
Desai; editing by Anthony Barker)

LMEWEEK-UPDATE1-Goldman, BlackRock decline comment on copper ETP