NEW YORK The delay in
launching physical copper exchange-traded funds (ETFs) has
played a part in hindering the metals advance, president
Henry Weingarten of AFund Inc. says.
Weingartens company, which
is active in gold, silver and copper, had expected JPMorgan
Chase & Co. and BlackRock Inc.s respective ETFs to
have been trading by now.
"Wed expected the physical
copper ETFs to be a main driver (of prices), but theres
still no trading," he said at the Society for Mining,
Metallurgy and Explorations mining finance conference in
New York. "Well stay long copper until two weeks after
the ETFs are up and running and then well get out."
The two ETFs have received
approval from U.S. regulators, but those decisions are being
challenged in the Washington Court of Appeals by major copper
consumer Southwire Co., Carrollton, Ga.
Coppers biggest stumbling
block to higher prices is the fact that the world economy
isnt performing as strongly as had been expected,
according to Weingarten.
Copper prices are often viewed
as a proxy for economic growth due to the metals use in
housing and construction.
"Well start to see an
improvement (in the global economy) in the second half of
2015," he said. "Were not bearish for copper, but
were not bullish, either."
The strength of the U.S. dollar
is overall negative for the metals complex, Weingarten
"The yen is not an
alternativethe dollar is showing relative strength
against other currencies because its the best of a bad
lot," he added.