Physically-backed ETFs able to squeeze the market

Writing in The Markets in 2011, Deutsche Bank global head of commodities research Michael Lewis argues that if investment demand grows to represent just 2% of global copper demand, this would translate to approximately 65% of copper inventories. Copper, he says, is the metal most susceptible to price spikes as a result of ETFs attracting capital. However the report does strike a note of comfort amid concerns over ETFs distorting prices, suggesting that gold would have to exceed $2000/oz for it to signify a bubble. With gold currently hovering around the $1380/oz mark there is still...