ANOTHER HUGE DEVALUATION FROM CHINA SENDS DEFLATION SCARES AROUND THE WORLD
Gold $1254.40 UP $1.30
Silver 17.43 UP 4 cents
In the access market 5:15 pm
THE DAILY GOLD FIX REPORT FROM SHANGHAI AND LONDON.
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 17 (10:15 pm est last night): $ 1257.83
NY ACCESS PRICE: $1252.50 (AT THE EXACT SAME TIME)
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$ 1260.31
NY ACCESS PRICE: 1255.60 (AT THE EXACT SAME TIME)
HUGE SPREAD TODAY!! 5 dollars
London Fix: OCT 17: 5:30 am est: $1252.70 (NY: same time: $1253.50: 5:30AM)
London Second fix OCT 14: 10 am est: $1254.80 (NY same time: $1255.50 , 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 6,387 CONTRACTS to an OI level of 491,627 as the price of gold FELL $1.90 with FRIDAY’S trading.
We are in the delivery month is October and here the OI GAINED 292 contracts UP to 661. We had 41 notices filed yesterday so we gained another 333 contracts or 33,300 additional oz will stand.
The next delivery month is November and here the OI ROSE by 46 contracts UP to 2986 contracts. This level is extremely elevated as generally November is a very poor delivery month.To give you an idea of size, on Oct 14 2015, we had an OI of only 240 contracts.The next contract month and the biggest of the year is December and here this month showed an decrease of 6,623 contracts down to 366,762.
Today we had 530 notices filed for 53,000 oz of gold.
And now for the wild silver comex results. Total silver OI rose BY 2899 contracts from 186,091 up to 188,990 as the price of silver fell to the tune of 2 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 26 contracts up to 147. We had 2 notices filed yesterday so we gained 28 contracts or 140,000 additional oz will stand for delivery.The November contract month saw its OI lose 4 contracts down to 329. The next major delivery month is December and here it ROSE BY 765 contracts UP to 150,145