From FT Alphaville:
You never can tell with Goldman Sachs, can you?Previously:
On the one hand they revise their copper market outlook and advise to take profits; on the other hand they claim not to believe in the surplus inventory story.
On the one hand they say collateral financing was never an issue; on the other hand they say there has now been a major crackdown on the practice (which never really existed)....MORE
Bloomberg: Analysts See Up to 10% Further Drop in Copper Before Resumption of Uptrend
"Why the Chinese copper financing scheme is a big deal"
Umm, Folks: "Chinese ‘copper financing’ got even more popular this month"
UPDATED: Uh oh: What's the Real Demand for Copper (a cupric currency conundrum)
If The Gold/Copper Ratio Is Truly A Harbinger Of Market Weakness, Here Are Some Pair Trade Ideas (but what about treasuries?)
As Copper Hits Record Highs: "China’s bonded-warehouse copper mystery"
Most of the above link to Alphaville who seem to be be the only folks who understand there could be a real problem if this blows up. Here are some of my ramblings on related topics:
...The Chinese are not shy when it comes to hoarding or the fungibility of commodities vs. currency, see:
Commodities: "Is China preparing for a vampire attack?"The latter story was enough for the Russian representative of a major Swiss trading firm to begin dumping a large physical inventory of copper cathodes.
Copper Stockpiled by Chinese Pig Farmers May Be Liquidated
For weeks he was muttering about "bleeping %$#*!@# Chinese pig farmers"