Tired: US Gold is Gone; Wired: Chinese Everything is Gone

Yahoo: Traders in China Rush to Check Metal Stocks on Pledging Concerns

Traders are rushing to check that the metal they hold in Chinese warehouses really exists, as allegations of irregular financing trigger a widespread loss of confidence in the world’s largest aluminum market.

...Last week’s allegations, which are focused on a facility in the city of Foshan in southern Guangdong province, have spooked China’s metals markets, which rely on warehouse receipts to prove ownership. Several traders have alleged they lent a total of more than 500 million yuan ($75 million) against stockpiles of the metal stored in the Guangdong warehouse, but then found the inventories were worth significantly less than that.

Some Chinese traders have started moving inventories to warehouses they believe are less risky, according to the people.

Back in 2014 it was copper. Please note the date of these copper posts from June and July 2014, right when the U.S. dollar began its bull market in the midst of the Federal Reserve's taper of QE3. Economic and financial market patterns are repeating!

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