NYT: A Shuffle of Aluminum, but to Banks, Pure Gold

Wall Streets foray into commodities warehousing appears to be at the expense of consumer, both big and small.

Following London Metal Exchange rules, warehouses have to move 3000 tons of stored product daily, and in a New York Times investigation, they found this was done. However, the metal wasn't being delivered to the consumer, but to other warehouses, to follow the rules but push up the price of the commodity. Since Goldman bought the warehouse, delivery time has jumped from six weeks to 16 months. Aluminum is where Goldman Sachs has added to its profit, but now  JP Morgan has taken hold of  copper  and its warehousing, which threatens to delay delivery of that commodity as well and spike prices. From the New York Times

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