Goldman Sachs, the fifth-largest U.S. bank by assets, has been accused of manipulating the metals market, leading to artificially high prices, the Wall Street Journal reports.
In recent years, Goldman, among other Wall Street firms, has been in the business of purchasing metals warehouses, according to the WSJ, Goldman’s Detroit warehouse alone holding nearly one-third of the 4.62 million tons in LME-approved warehouses. Now, the London Metal Exchange is investigating Goldman after the investment bank was accused by firms, including Coca-Cola, of purposefully limiting the amount of metals it released to customers.
Coca-Cola, which relies on metals such as aluminum, is reportedly upset with what it views as artificial price inflation. “The situation has been organised artificially to drive premiums up,” Dave Smith, Coca-Cola’s strategic procurement manager told the Wall Street Journal.
It’s not secret that Goldman’s enthusiasm for metal has heated up of late. In May, Goldman reportedly raised its forecasts for metal commodities, WSJ then reported.
If Coca-Cola accuses of manipulating metal prices, who should accuse those that immobilize most of the cereals in the world, retain, create news, even untrue, saying there is scarcity and when the market goes up what they want, release the lot, sell and keep the money; and this situation creates the world food crisis?.