all right welcome everybody I’m here with another episode of metal Monday special edition with my two friends the Pete’s I guess I’ll call you the Zener it’s Dana Xena Xena precious metals I’m here in Chicago right across the street from the Chicago Mercantile Exchange and and my father was there for many many years and I was over down down the street at the board trade for many many years and and Pete was a trader as well right Pete that’s correct we traded at the Merc in the in the currency futures right all right so we kind of knew each other from the olden days you know so real quick with you know today is actually Friday but we’re gonna post this on mondays hope we’ve seen a real good running copper you want to give our viewers a quick like oversight why you think it’s running and and kind of some insight on on your guys is in so sure I mean first off let’s look at let’s look at production the bottom line is that you if there is a shortage or anything just basic economics 101 prices are gonna go higher we

closed down the Chilean mines both one and two largest producing mines in the world third largest producer man in the world is in Peru Petter who closed down also from coronavirus subsequently we found shortages of reef unrefined or which in turn put a lot of pressure on China China was closed down due to the virus but an open sooner and as it open sooner they started cleaning up their reserves and then I’m gonna said they ran out of reserves they’re responsible for 60 to 63 percent of all to consume copper in the world so we ended up with more demand than there was product and as you guys know and it drove the price higher even though we did have debilitation in such markets as durable goods and automobiles sailes we still saw people producing for the future and they the demand increased and even in solvents we saw an increase so subsequently we saw more buying that more buying than there was product available and bulk form 4 months ago we started to see a very very strong market yeah well I mean we loved to see a round 270 we’d love to

see a person – ladies – eighties the number boy we’d love to see it at that but we’ll see if there’s enough juice there to do it you know ya know and I would just point out that week we got up and tested the high from two weeks ago just shy of 270 in earlier trading today and then it sold off and it’s currently trading lower on the day so we do have a little bit of a risk of a of a double top there it’s kind of suggestive of a correction particularly if we if we close lower today I could see its dropping back down into the 250 but it is a failed test of a cycle high so it we set a high a couple weeks ago just shy of 270 the market sold off a little bit and then took another run at it but so far has failed to penetrate that level so that sort of the failed test sort of fortifies that resistance level and the double top formation is it’s just what it sounds like it a high another high that doesn’t penetrate the first one yeah and then it’s

a pretty solid technical indicator particularly if there’s a failure on the day in terms of closing lower and so we would look for the confirmation point so the kind of the low in between the two highs is around 253 or so so if we break that level it’s a pretty bearish indicator although I would say based on the size of the double top potential double top formation it would still be corrective within the the longer term uptrend but it would project down to probably two 48 to 47 ish area possibly even as low as 245 but again I think we’re still gonna see interest in buying the dips and that’s what the tea leaf readers have to say they our technicians you know makes fun of me he says even the Titanic had a good chart room I have to skim a little strip occasionally I kind of like to look at things look at the bankers that are laying the money out to buy the stuff to me that’s when it becomes when the rubber hits the road to chart and but I’ll tell you something more times than not as technical work

really is spot-on so we have it’s good for your people to get each side of the market view we can get a correction down to the 250 range again possibly this way you’re thinking I think that question is do you people yeah I think that that’s possible certainly possible if we if we do in fact closed lower on the day today being Friday the other thing is that we’re seeing so much cash out there right now I mean this you know I know you liked it article I did well on the the tidal wave of cash it’s just washing through copper right now so there’s a lot of available equity for lending as well as just outright starting projects with copper so it that’s giving impetus to the market to hold this area so I hope I hope it continues yeah I would also say that there’s a really good article on CNBC this week about a lot of the stimulus money is going to be going into green initiatives yeah 5g and electric cars and solar and all of that is going to be creating demand for copper silver and some of

the other home yeah metals as well you know and as we’re talking to our scrappers here you know these guys understand that you know you have 20 to 50 pounds of copper car roughly but in in an electric car you know you’re gonna have a hundred twenty pounds of copper in it with no problem so so net-net we’re gonna we could see triple the consumption going into automobiles even though they’re lower and we’re seeing a lot of initiatives in in a in a myriad of countries from singapore on down that are giving tremendous rebates on the tax side for entering into electric cars so we could see that demand picking up three four five months from now we could see that cycle start up which would be at the year end which would make sense it would it would it would be a very good possibility for copper to get a little extra shot you know well semi okay great on there too to share with everyone I’d be interested to read that myself anyway and we should probably get into this part two of your your app when you’re yeah oh yeah

absolutely let’s looks like you may have disabled screen sharing there Nick so you try that alright so there we go there is the tornado hedging platform beautiful beautiful in its simplicity yep so we have gold gold silver palladium platinum and copper upper yeah the first four you can trade down to the out so you could put in a single ounce of gold a single ounce of silver if you if you wanted to on copper it’s a pound so if you wanted to run through a scenario Nick I would I’ll show you how to hedge that exposure let’s just what he’d up we bought a good load of MCM which recovers in ninety percent copper a twenty percent it’s got insulation on it it’s a it’s a product that usually comes in from like a demo company but let’s just use some even numbers make things easy let’s say they hold in 10,000 pounds a day perfect bother impressive you know the markets on that kind of a run you know right here’s 268 say hey you know with that advice you gave me earlier that we might see a dip we wanted to

hedge it like show me how did yeah yeah so great and Alan thanks super simple so you put in your volume here you know what I think we’re kind of blocking it can you guys see it on the screen I only see the one side of it okay all right great okay so ten thousand pounds yeah and because you hold the physical at this point so you are long the physical but we usually say long the vault but in your case you’re gonna be long the yard or long the truck you’re gonna sell 10,000 pounds gonna sell 9th house because it’s reduction reduction so so 9,000 feet you confirm there’s an option to put a reference number in so if you have a purchase order number that you want to link to this particular hedge you can put it in there so let’s just say purchase order 1 2 3 and then you just hit OK and you’re filled and your fill is at 268 on 9,000 pounds and that’s it and that’s your price you do that sitting in the cab of your truck you can do that as its

being low as a forklift is loading it and you’re confirming you’re seeing it go in the back of the truck there’s your phone right there on the iPhone so it’s the same thing and stacks them yeah depending on the orientation of your of your phone I mean you can do it in poor you have as well friendly which is super important damn it really is so you can be at the wherever you you purchased the the copper from you could be in your truck and punch it in right there as soon as you take and the deal is is done so it’s pretty slick and easy it will because this is a demo account so that nine thousand ounces would then show in positions and also trading history but this isn’t connected to to the back office because it’s yeah ml account but it’s all really simple and intuitive very easy to do well you know what else is nice good Pete didn’t point out to is that that’s live and that this can have a conduit into your QuickBooks let’s say so your back-office neck you could be your back-office will

note to the penny how much cash it’s got because you want that and right away boom you know where you’re at so I mean if you need to find out if hey I want to buy another load where do I stand what’s my cash it’s it’s live it’s instantaneous they’ll always know where you’re at and a lot of a lot of bookkeepers really love us for that you know – yeah absolutely well so we did part one which basically was the setup right all right applicant set up your account this part two is really covered how to do it right one step and correct me if I’m wrong either of you that we’ve almost missed is you’ve got a funnier account though door did we go over the funding account or one right so once the I don’t believe we did actually so once the account is set up and approved by compliance then we send wiring instructions to the client with directions to fund the account and it’s it’s very simple to do you just wire the funds into it’s a us-based bank that we use and once the account is funded I

typically do a quick test of the account to make sure all the functionality works so I’ll buy and sell one ounce of silver and as long as everything flows through to where it’s supposed to be then the account is the keys are turned over to the client and they can start hedging and and and of course Pete nine Tom and Adam and the rest of the team are all he’s available to answer any questions or offer advice where we’re all licensed now are they wiring that money to the Pete grant account or a second – that never happened oh it doesn’t am I see so that would go into their account correct and would be held at arm’s length we couldn’t touch that money if we wanted to correct that is correct okay just watch make sure I was clear on that well great I think absolutely and it’s important to Pete if you could take one real quick second explain to what what the the margin is that they get so they can understand that they don’t need five thousand dollars to buy five thousand dollars with the copper could you run that down

yeah we we like the clients to keep about four percent margin so it allows you to control a large amount of metal with a relatively small amount of money and so again four percent is sort of the level you know if it gets down to two two percent will will probably give you a nudge and let you know that you might want to put some more margin in but but it’s yeah you can control quite a bit of so if my little so if I want to do if I wanted to buy a hundred thousand dollars worth of copper I’d only have to put up four thousand dollars in my hedge account and I could have it covered in there for then I would have all that equity free and to use in which however I decided to do it is that correct that’s correct Bob more metal yeah and allows you over the years as you learn how to use they buy ants outside of this to expand your business because you have more leverage and it gives you more added security and oh by the way your bankers love the fact that

you’re hedging and when it comes time for you to come in and maybe borrow a little money at the bank because we all know how cash-strapped you can get in the metals business you can go hey I’m never exposed I’m hedged and if you want I’ll even put a portal in your bank so you could see what I’m doing if you’re concerned about size of the loan we we’ll be happy to assist you in any way that we can good to know yeah well thank you gentlemen you bet so do you think we’ll need three or four parts how many more we got I’ll leave that up to you Pete well the man with the plan I tell you what I I mean we’ve gone through how to open the account how how to trade the account what’s needed what is everything I think we’re we’re pretty much there I think we really we really cleaned it up I think the thing that we should be thinking about Nick is when you get your account open is to show you guys using it particularly when we talk with bread with platinum palladium when

you guys have some auto cats and you want to lay it off because the spreads are so tight you know versus the other market I mean you look at our stuff and you realize how much money you’re gonna say by using it what we’ll do is I think we should head some of your auto cats live and just show you guys going through it will of course won’t be showing accounts or anything else or amount you could do ten or twenty but just you could either pick up your phone or do it on your computer whatever and that would be the clothes say hey guys here was the steps we went through here was how it was done on the phone and oh by the way we want to show you live this is our account and how it works yeah absolutely listen have a good weekend man you guys have a good weekend yeah all the viewers and listeners this is gonna be posted on Monday and have a good week beautiful thank you so much thanks