Traders or Commodity Finance Banks? Part III – Gerald Metals

By Simon  Jacques  – note the author of this article has a short position in the company Each trading company has a business model of its own, different strategies come with varying degrees of success depending on market conditions but it’s the same equation: carrying-costs are the predicament for the commodity traders. Their survival is related to their ability to withstand frequent small gains and few big losses. Whoever has the most money at the “end” is the winner in this gambit. The bankers, central to this universe, have no pieces on the chessboard- it’s traders who are in charge…