Arbitrage Continues to Grow – $9.00 Higher for Physical Gold SGE than Paper Gold COMEX
Gold closed at $1224.00 up $2.80
silver closed at $17.03: up $0.15
Access market prices:
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 Nov 15 (10:15 pm est last night): $ 1235.74
NY ACCESS PRICE: $1225.20 (AT THE EXACT SAME TIME)
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$ 1236.97
NY ACCESS PRICE: 1227.90 (AT THE EXACT SAME TIME/2:15 am)
HUGE SPREAD TODAY!! 9.00 dollars
London Fix: Nov 15: 5:30 am est: $1228.90 (NY: same time: $1224.90 5:30AM)???
London Second fix Nov 15: 11 am est: $1226.95 (NY same time: $1226.95, 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 15,334 CONTRACTS to an OI level of 488,774 with the continual pummeling in the price of gold as it EVENTUALLY FELL $2.30 with YESTERDAY’S trading. In the front month of November we had 78 notices standing for a LOSS of 107 contracts. We had 146 notices served on yesterday so we GAINED 37 contracts or 3700 ADDITIONAL oz will stand for delivery in November. The next contract month and the biggest of the year is December and here this month showed a decrease of 21,792 contracts down to 248,703. The December contract month is still highly elevated compared to a year ago. On Monday Nov 16/2015 comex reading day, we had a total of 191,543 contracts standing ( a loss of 2,426 contracts from Nov 10/2015) It certainly emphasizes the huge demand for physical gold. THIS SHOULD EXPLAIN TO YOU WHY THE BANKERS ARE CONSTANTLY WHACKING OF GOLD (AND SILVER): THE HIGH OI FOR DECEMBER AND THE HIGH PROBABILITY THAT MANY WILL TAKE DELIVERY.
Today, we had 51 notice(s) filed for 5100 oz of gold.
And now for the wild silver comex results. Total silver OI FELL by 3142 contracts from 179,361 DOWN TO 176,219 as the price of silver FELL BY $0.48 with yesterday’s drive by shooting. We are moving further from the all time record high for silver open interest set on Wednesday August 3/2016: (224,540). The front month of November had an OI of 112 and thus a loss of 1 contract. We had 0 notices filed yesterday so we lost 1 contract or an additional 5,000 oz will not stand for delivery in this non active month of November. The next major delivery month is December and here it FELL BY 3,767 contracts DOWN to 88,556. The December contract month is also highly elevated compared to a year ago. On Nov 16/2015 reporting day, we had a level of 70,345 contracts having lost 3272 contracts on the day).