Copying and distributing are prohibited without permission of the publisher

LORD COPPER: Warehousing queues ensure perpetual profit

June 06, 2011 - 11:28 GMT

KEYWORDS: Lord Copper

Back in February last year, I wrote a piece about what a wonderful business warehousing is. And it seems to me that business has just got better and better

It was triggered by the acquisition of warehousing companies by JP Morgan and Goldman Sachs; since then, yet more of the industry’s big boys have got into the act, in the shape of Trafigura and Glencore.

And it seems to me that the business has just got better and better.

Now, I made my position on this clear a long time ago. If you produce London Metal Exchange-deliverable material and a warehouse is offering to pay you (either directly or through its "associate") a healthy premium for that metal, then you would be mad not to take the trade, at least for a good part of the metal.

At a stroke, it clears your concerns about credit-worthiness and it helps keep your cash flowing.

This is, as I said a few weeks ago, the new physical...

All material subject to strictly enforced copyright laws. © Euromoney Institutional Investor PLC.

subscribe to this feed Comment & analysis

Upcoming Events

MB Glossary

From Aluminium to Zinc...
Search this free glossary on metals

Try the new Metal Bulletin BETA site...

We've added some great new features and tools which we think you'll find useful including:

  • Easier to find the content suitable for you
  • Improved Price Book functionality
  • Better search function

Simply click 'Yes please' below to go straight to the BETA site (you can return to the original site any time you wish).