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Matt Levine

The Goldman Sachs Aluminum Conspiracy Lawsuit Is Over

Come with me on a journey into Abstract Aluminum Space, where aluminum enters and never leaves except for brief sightseeing tours around Detroit.

Let me tell you about aluminum. Aluminum is a metal that is used to make beer cans, and also for some other things. You might want to buy aluminum for either of two reasons:

One big financial purpose is to hedge your future plans to make beer cans: You think aluminum looks cheap today, so you buy some aluminum to lock in your costs. But there are other possible financial purposes. Maybe you are hedging some risk in some other commodity that is correlated with aluminum. Maybe you are just speculating on the price of aluminum. Whatever. Financial purposes are broad; the point of this category is that you want exposure to the price of aluminum, as opposed to an actual pile of aluminum to be fed into your beer-can-making machine.