The release of physically-backed industrial metal ETCs has evoked mixed reactions across the media and financial industry. Paul Burgin explores the pros and cons of these new products
The launch of the first physically-backed industrial metals exchange-traded commodities (ETCs) has caused controversy. Analysts argue their emergence will cause volatility and price spikes in markets that are already overstretched. Yet the exchange-traded product (ETP) industry is keen to play down their fears. ETF Securities launched the first of a suite of physically-backed industrial metals ETCs in December last year. Copper, nickel and tin were the first to go live on the company’s platform, which uses the London Metal Exchange (LME) as its quality benchmark. Aluminium, lead and zinc...
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