In theory it shouldn’t matter whether there exists a physically-backed ETF for various commodities, most famously for gold and silver.  However even small disturbances to the supply and demand situation for a commodity can affect the price.  There are two physically-backed copper ETFs in the works which could potentially roil what is already a volatile market.  It could also affect is the Dr. Copper effect.  That being said don’t expect a let up any time soon in the commodity ETF assembly line.  As long as traders and investors are willing to play, the ETF industry will gladly serve them up.  In today’s screencast we examine the ETF-ization of everything, including copper.

Items mentioned in the above screencast:

The financialization of copper.  (CNBC, Economist)

Dr. Copper nails it once again.  (Money Game)

The ETF-ization of everything.  (Abnormal Returns)

A new ‘white metal’ ETF is launching.  (Random Roger)

Daily chart of copper futures.  (Finviz)