"When I was settled in London, the East India Company had £800,000 worth of gold to sell. I went to the sale, and bought it all. I knew the Duke of Wellington must have it. I had bought a great many of his bills at a discount. The Government sent for me and said they must have it. When they got it, they did not know how to get it to Portugal. I undertook all that and I sent it to France; and that was the best business I ever did."Nathan Rothschild, ~1811
3 comments:
Can you explain how this was an arbitrage opportunity and situation?
Hi Hall, this was just an early example of buying in one market, later to supply in another, and taking advantage of the supply chain inefficiencies along the way.
See the post discussing Glencore's prospectus (25 June '11).
Buying from one arm of the British government and selling it to another.
Sweet gig, if you can get it.
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