Warning: Use of undefined constant referer - assumed 'referer' (this will throw an Error in a future version of PHP) in /usr/home/essaywo/public_html/essays on line 102

Warning: Use of undefined constant host - assumed 'host' (this will throw an Error in a future version of PHP) in /usr/home/essaywo/public_html/essays on line 105

Warning: Cannot modify header information - headers already sent by (output started at /usr/home/essaywo/public_html/essays:102) in /usr/home/essaywo/public_html/essays on line 106

Warning: Cannot modify header information - headers already sent by (output started at /usr/home/essaywo/public_html/essays:102) in /usr/home/essaywo/public_html/essays on line 109
Goldman Sachs Hoarding Aluminum - Essay

Goldman Sachs Hoarding Aluminum

History is filled with examples of financial speculators who tried to make big profits by hoarding commodities like gold, silver and copper. Now, some big users of aluminum, including Coca-Cola [HYPERLINK: http://www.crainsdetroit.com/article/20110626/FREE/306269994/aluminum-bottleneck-cokes-complaint-12-of-global-stockpile-held-here] and MillerCoors, say that the practices of large financial institutions like Goldman Sachs have driven up the price of that important metal.

Unlike investors in the past that bought up the commodities they were trying to control, Goldman is not buying the world's aluminum. Rather, it is storing the metal for other banks, traders and aluminum producers in a ...

Want to read the rest of this paper?
Join Essayworld today to view this entire essay
and over 50,000 other term papers

pays incentives to owners of the metal to keep it in the bank's warehouses.

Those delays have bolstered Goldman's profits, because the bank earns more rent the longer metal stays in its warehouses. However, companies that use aluminum argue that the delays hurt them by making them wait for deliveries and can also raise the spot price of aluminum because that price is calculated by a formula that includes a premium based on storage costs. An official at MillerCoors told [HYPERLINK: http://www.banking.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=9b58c670-f002-42a9-b673-54e4e05e876e] a Senate committee that the difficulty in getting metal supplies had cost it and other companies $3 billion last year.

Goldman Sachs says [HYPERLINK: http://www.goldmansachs.com/media-relations/in-the-news/current/goldman-sachs-physical-commodities-7-23-13.html] that its warehouses follow the rules of the London Metal Exchange, a commodity market that regulates the operation of a ...

Get instant access to over 50,000 essays.
Write better papers. Get better grades.

Already a member? Login

CITE THIS PAGE:

APA
MLA
Chicago
Turabian

Goldman Sachs Hoarding Aluminum. (2013, December 5). Retrieved April 28, 2024, from http://www.essayworld.com/essays/Goldman-Sachs-Hoarding-Aluminum/103422

"Goldman Sachs Hoarding Aluminum." Essayworld.com. Essayworld.com, 5 Dec. 2013. Web. 28 Apr. 2024. <http://www.essayworld.com/essays/Goldman-Sachs-Hoarding-Aluminum/103422>

"Goldman Sachs Hoarding Aluminum." Essayworld.com. December 5, 2013. Accessed April 28, 2024. http://www.essayworld.com/essays/Goldman-Sachs-Hoarding-Aluminum/103422.

JOIN NOW

Join today and get instant access to this and 50,000+ other essays

PAPER DETAILS

Added: 12/5/2013 05:53:30 PM
Submitted By: frivolous7
Category: Business
Type: Premium Paper
Words: 1214
Pages: 5

Save |

Report

SHARE THIS PAPER

SAVED ESSAYS

Save and find your favorite essays easier