JP Morgan has historically denied that it owns a huge chunk of the copper sitting in London Metal Exchange warehouses.
But we do know that “a single trader has reported it owns 80% to 90% of the copper” on the LME, which is worth $3 billion and represents about half of the world’s exchange-registered copper stockpile, according to the Wall Street Journal.
Though JP Morgan won’t confirm or deny if it is the current owner of that copper, some people are absolutely positive its them.
In November, it was revealed that one trader owned more than 50% of LME copper, and insiders said JP Morgan was the holder.
J.P. Morgan Chase & Co. recently had a large position in copper, though it is unclear whether the U.S. bank increased its holdings, or whether a new player has taken dominant position.
While commodities exchanges scrutinize all holdings to ensure a single player isn’t trying to corner the market, and many of the positions are owned by big firms on behalf of clients, the large holdings do result in a concentration of ownership that could skew prices.
Copper is up 28.3% this year and on Tuesday it rallied to a record high of $4.2705 per pound. The LME’s three-month copper contract closed at $9,353.50 per metric ton – also a new high.
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