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Bloomberg details how commodity fraud works but of course omits gold
"Overpledging" goes far beyond copper trading.
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Why Metals Keep Going Missing in Commodity Trading
From Bloomberg News
Tuesday, August 16, 2022
A group of Chinese traders discovered in August that a copper merchant in northern China wasn't holding the half a billion dollars' worth of ore that was meant to be their collateral. This followed an episode in June involving missing aluminum.
The incidents highlight rising risks in commodity financing as China's growth model is tested. And they carry disturbing echoes of a much bigger scandal eight years ago -- the Qingdao fraud -- that triggered a sweeping overhaul of the commodities business at international banks and trading houses.
... Dispatch continues below ...
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Company Announcement
Wednesday, August 10, 2022
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... For the remainder of the announcement:
https://relevantgoldcorp.com/posts/299/
How could a stockpile go missing?
There are several ways things can go awry.
Commodities trading, whether that's wheat, copper, or oil, is typically a high-volume, low-margin business. To fund purchases and optimize cash flow, traders take out loans backed by the commodity they're trading.
In the metals business, that collateral is often in the form of so-called warehouse warrants or receipts, which record details like the quantity, quality, ownership, and location of the goods.
The dependence on paper makes an easy target for fraud.
Warrants can be faked, using fictitious material. A single pile of metal can be collateralized for multiple loans -- often known as over-pledging.
Or a stretched trader might simply sell on the goods to which the lenders have a claim, without paying back the loan.
There's a rich record of risk and fraud stretching back through the history of global commodities trading. ...
... For the remainder of the report:
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Toast to a free gold market
with great GATA-label wine
Wine carrying the label of the Gold Anti-Trust Action Committee, cases of which were awarded to three lucky donors in GATA's recent fundraising campaign, are now available for purchase by the case from Fay J Winery LLC in Texarkana, Texas.
Each case has 12 bottles and the cost is $240, which includes shipping via Federal Express.
Here's what the bottles look like:
http://www.gata.org/files/GATA-4-wine-bottles.jpg
Buyers can compose their case by choosing as many as four varietals from the list here:
http://www.gata.org/files/FayJWineryVarietals.jpg
GATA will receive a commission on each case of GATA-label wine sold. So if you like wine and buy it anyway, why not buy it in a way that supports our work to achieve free and transparent markets in the monetary metals?
To order a case of GATA-label wine, please e-mail Fay J Winery at bagman1236@aol.com.
* * *
Support GATA by purchasing
Stuart Englert's "Rigged"
"Rigged" is a concise explanation of government's currency market rigging policy and extensively credits GATA's work exposing it. Ten percent of sales proceeds are contributed to GATA. Buy a copy for $14.99 through Amazon --
-- or for an additional $3 and a penny buy an autographed copy from Englert himself by contacting him at srenglert@comcast.net.
* * *
Help keep GATA going:
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:
* * *
Join GATA here:
New Orleans Investment Conference
Wednesday-Saturday, October 12-15, 2022
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
https://neworleansconference.com/
* * *
Toast to a free gold market
with great GATA-label wine
Wine carrying the label of the Gold Anti-Trust Action Committee, cases of which were awarded to three lucky donors in GATA's recent fundraising campaign, are now available for purchase by the case from Fay J Winery LLC in Texarkana, Texas. Each case has 12 bottles and the cost is $240, which includes shipping via Federal Express.
Here's what the bottles look like:
http://www.gata.org/files/GATA-4-wine-bottles.jpg
Buyers can compose their case by choosing as many as four varietals from the list here:
http://www.gata.org/files/FayJWineryVarietals.jpg
GATA will receive a commission on each case of GATA-label wine sold. So if you like wine and buy it anyway, why not buy it in a way that supports our work to achieve free and transparent markets in the monetary metals?
To order a case of GATA-label wine, please e-mail Fay J Winery at bagman1236@aol.com.
* * *
Support GATA by purchasing
Stuart Englert's "Rigged"
"Rigged" is a concise explanation of government's currency market rigging policy and extensively credits GATA's work exposing it. Ten percent of sales proceeds are contributed to GATA. Buy a copy for $14.99 through Amazon --
-- or for an additional $3 and a penny buy an autographed copy from Englert himself by contacting him at srenglert@comcast.net.
* * *
Help keep GATA going:
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:
