ETFS Copper

I sold my Copper ETFS shares today (COPA:LSE). Exchange traded funds are just a vehicle for trading commodities on markets. You don’t buy the commodity itself, rather you buy into a fund which is supposed to buy the commodity. Some say that ETFS are the next derivative bubble. The next collateralized debt obligations (CDO) if you will. I’m not so sure about that, I will give it some thought some other time.

Anyway, I made $480 on the sale. Not at good as I was hoping. I did much better on the rise of crude (ETFS OILD:LSE) after the crisis, I got into copper too late. Commodities have been fairly volatile recently and there are worries and rumours that they are, in general, over priced. So I decided to sell. It means that I have about £700 to invest now and I think my portfolio could do with some more stable stocks. I might think about some food companies. If commodity prices do fall then we might see their margins increase over the next year. Could be a good time to buy…

Author: phil

Complex Systems Scientist.