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View Full Version : Should Kitco offer base metals pool accounts?



Copperhead
06-22-2011, 08:18 PM
Should Kitco offer base metals pool accounts? In particular for metals such as cobalt that are more costly and don't have ETFs (that I know of).

couchguitarist
06-22-2011, 08:54 PM
It would be cool if they had it. I like to diversify - in metals anyway, but not sure if its a good idea for the company. Seems they are having some difficulties.

GoldSilverbvg
06-22-2011, 09:57 PM
That would be neat. I would like to get into base metals - moreso than just saving aluminum cans :p . Someone else here wrote about buying copper bullion for twice the market price of copper. I think a Kitco pool account would, hopefully, be able to undercut these prices.

Copperhead
06-23-2011, 02:52 PM
I think it is about the only practical way for most people to own physical base metals.

Gwyde
07-09-2011, 08:02 AM
As base metals are bulky, storage costs are high. Most commodity ETF's (except gold and silver bullion) use futures to track the price. Disadvantage is the interference of contango (unfavorable price spread between different months of delivery).

For 'rare' base metals as Cobalt, there are no future contracts I know of. Industrial users take delivery and stockpile at their storage.
Lithium, Indium, Germanium, REE ... : same story.

HighInBC
07-09-2011, 09:16 AM
The basis for the pool is that they have physical backing on all of the metal they offer, not just paper backing.

It would overwhelm their storage to load up on copper. Even if just a few million dollars went into copper they would likely find it not worth the effort to manage that much metal. The effort to profit ratio would no be as favorable as their current business model.

I am not for paper trading of precious metals due to the fact that they are scarce and precious, but I think paper is the way to go for base metal. They change in value but you can always get a million dollars worth if you really need it. This makes default far less likely.

As for the more rare metals, perhaps but if they were really rare they would be precious.

Copperhead
07-09-2011, 02:22 PM
As base metals are bulky, storage costs are high. Most commodity ETF's (except gold and silver bullion) use futures to track the price. Disadvantage is the interference of contango (unfavorable price spread between different months of delivery).

For 'rare' base metals as Cobalt, there are no future contracts I know of. Industrial users take delivery and stockpile at their storage.
Lithium, Indium, Germanium, REE ... : same story.

You and High both made good points, but just think if you held the more rare base metals and someone needed them badly. If there are no future contracts you might be the only game in town outside the mines.

Gumby_5
07-29-2011, 10:47 PM
Just buy into the Goldman Sachs pool accounts

http://forums.projectcovo.com/showthread.php?t=3665911

lorax2013
11-09-2012, 07:11 PM
There are already pool accounts and soon to be ETFs for many of these base metals. Just google.

As for buying as hard assets at low commissions, with buyback option, that is a different story. Only a very few options exist - only indium and germanium to my knowledge. Plus Kitco offers Rhodium and there are some who offer copper.