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...