How to make BIG (like HUGE) money in metals – hint: don’t buy or sell

Want to be a BSD in metals? Easy, do what a market maker in subprime debt at Goldman Sachs did. A 34-year-old banker bought up the bonds of Freeport-McMoRan and Teck Resources and other companies right before the commodity markets got hot earlier this year; in the case of Freeport-McMorRan, the bonds dropped to 40¢ on the dollar in January and now trading at 90¢.

By the end of June, the trader had raked in profits in excess of $100-million. What originally looked like a risky bet, now appears to be a wise decision. Good on you!

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