the squid does it again – Goldman closes copper trade with another loss…

Goldman Sachs on Thursday closed its recommendation that investors bet on higher copper prices, citing the belief that China would clamp down on the use of copper as a financing tool.

Amid tight lending restrictions, some merchants in China imported copper to use as collateral. With state regulators set to implement new policies to curb the practice, metal could flood out of such arrangements and onto the domestic copper market, Goldman analysts said. Analysts with the investment bank in March had recommended that investors bet on higher copper prices using the September-delivery contract on the London Metal Exchange.

That recommendation closed on Thursday at a loss of 3.1%.

We’ll take the other side of that thanks Mr Squid via KAZ!