Copying and distributing are prohibited without permission of the publisher
LORD COPPER: Warehousing queues ensure perpetual profit
June 06, 2011 - 11:28 GMT
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
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
This is, as I said a few weeks ago, the new physical...
All material subject to strictly enforced copyright laws. ©
Euromoney Institutional Investor PLC.
Please log in using your online subscriber details.
Your username will be your registered email address with Metal Bulletin.
If you aren't a subscriber yet, feel free to take a seven day free trial, or subscribe using the instructions below.
A standard subscription include one year's worth of news and prices. You can also upgrade to the full archive and benefit from more than 15 years of intelligence. Start your subscription today.
Taking a free trial will give you open access to Metal Bulletin online news, prices, archived content and email alert service for the next seven days. Start your free trial today.