Gold Pricing Spread Becoming a Common Occurrence
Gold $1252.50 down $0.50
Silver 17.42 up 12 cents
I will be back on Monday and I will bring you my normal commentary. I will
a short version on Tuesday night and then report to you very late Wednesday night
As for gold, we will see a rise in the gold and silver price starting Monday as China will be back from their one week holiday and they will have a feast on the low price
THE DAILY GOLD FIX REPORT FROM SHANGHAI AND LONDON
Shanghai fix closed this week for holiday.
The Shanghai fix is at 10:15 pm est and 2:15 am est
The fix for London is at 5:30 am est (first fix) and 10 am est (second fix)
Thus Shanghai’s second fix corresponds to 195 minutes before London’s first fix.
And now the fix recordings:
Shanghai morning fix Oct 3 (10:15 pm est last night): $ holiday
NY ACCESS PRICE: $
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$ holiday
NY ACCESS PRICE:
London Fix: Sept 30: 5:30 am est: $1255.40 (NY: same time:1255.40 $: 5:30AM)
London Second fix Sept 30: 10 am est: $1258.55 (NY same time: $1258.55 , 10 AM)
It seems that Shanghai pricing is higher than the other two , (NY and London). The spread has been occurring on a regular basis and thus I expect to see arbitrage happening as investors buy the lower priced NY gold and sell to China at the higher price. This should drain the comex.
Also why would mining companies hand in their gold to the comex and receive constantly lower prices. They would be open to lawsuits if they knowingly continue to supply the comex despite the fact that they could be receiving higher prices in Shanghai.
Let us head over to the comex:
The total gold comex open interest FELL BY 12,059 CONTRACTS to an OI level of 511,340 the as price of gold fell by $9.00 with yesterday’s trading.
The contract month of Sept is now off the board. The next delivery month is October and here the OI lost 135 contracts down to 251. We had 252 notices filed on yesterday so we gained 117 notices or an additional 11,700 oz will stand
The next delivery month is November and here the OI rose by 53 contracts up to 2988 contracts. The next contract month and the biggest of the year is December and here this month showed an decrease of 13,241 contracts down to 392,481.
Today we had 3 notices filed for 300 oz of gold.
And now for the wild silver comex results. Total silver OI FELL BY 2974 contracts from 194,811 down to 191,837 as the price of silver fell to the tune of 25 cents yesterday. We are moving further from the all time record high for silver open interest set on Wednesday August 3: (224,540). The next non active delivery month is October and here the OI rose by 11 contracts up to 96. We had 27 notices filed on yesterday so we gained 38 contracts or 190,000 additional oz will stand for delivery.The November contract month saw its OI rise by 7 contracts down to 365. The next major delivery month is December and here it FELL BY 3224 contracts DOWN to 159,493.
today we had 9 notices filed for silver: 45,000 oz