Extract from the Cornerstone Journal of Sustainable Finance & Banking, October 2013, written by Pete Hickson, Founder of Global Materials Advisors Ltd. and an Advisory Director at TrafalgarCopley.
Consumers claim that the practices of metal warehouses, owned in part by ‘Wall Street’ banks, have constrained supply and inflated costs. The LME warehouse operators counter claim that they are providing a service which has, over many years and many cycles, provided a metal supply more secure, less volatile and at lower overall cost to consumers than would have been the case. But maybe there is a silver (grey) lining in this tale. Could ‘Wall Street’, provide a good “ Main Street “ outcome?