Great time to buy, page-79

Hi Bayhunter,


The old boats engines enjoyed a run this morning.

I have enjoyed the input of other posters and learning about the Futures Exchanges in spite of having absolutely no appetite for investing in derivatives.

Wharehouse stocks are, it seems, about people wanting to invest in copper metal.

The warehouse stocks are not there to provide accessible inventory for the copper industry but, like the Central banks gold reserves that in the past backed the currency they had on issue, are there for the sole purpose of backing warrants which are an investment in copper metal

Futures exchange warehouse stocks, like central banks gold reserves, will in the not too distant future become extinct. Bitcoin is not backed by anything but is still owned enthusiastically. Why not virtual copper in our virtual world. Another creative way of turning dollars into either.


Some time ago Fuhc posted a very informative interview about Hedging which also discussed the fact that shares in mining companies over time haven't performed as well as the copper price, which has led a surge of investment in the physical metal.

https://hotcopper.com.au/search/search?type=post&users=fuhc46



Polar's last post led me to a warehouse stock report that had a "cancelled tonnage" column at the end

It seems that is simply tonnage earmarked to go out and is closed to trading.





Metals on warrants represent inventories in store at the LME’s warehouse. Investors cancel their warrants because they want to take it out of the store. Why?

Over the last three years inventories have fallen as the price rises and risen as the price falls.

This I think is simply explained by rule number 1 in the value investing bible.

Buy when the product is undervalued sell when it is overvalued.

Conclusions.

Investors hold copper when its undervalued and sell it when it is perceived to be over value





or is it a case of the jumps making the monkey fart or the farts making the monkey jump.

The bar-b-cue and sauce bottle beckons.