“Backwardation” Going Parabolic – Physical Gold SGF $20+ vs COMEX Paper Contracts
Gold closed at $1211.0 UP $1.40
silver closed at $16.62: UP $0.11
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 22 (10:15 pm est last night): $ 1232.32
NY ACCESS PRICE: $1217.50 (AT THE EXACT SAME TIME)/premium $14.82
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$ 1235.43
NY ACCESS PRICE: 1215.10 (AT THE EXACT SAME TIME/2:15 am)
HUGE SPREAD 2ND FIX TODAY!!: $20.33
London Fix: Nov 22: 5:30 am est: $1217.55 (NY: same time: $1218.10 5:30AM)
London Second fix Nov 22: 10 am est: $1212.25 (NY same time: $1213.10, 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 8,408 CONTRACTS to an OI level of 482,719 DESPITE THE FACT THAT GOLD ROSE $1.10 with YESTERDAY’S trading. In the front month of November we had 17 notices standing for a LOSS of 536 contracts. We had 536 notices served YESTERDAY so we NEITHER GAINED NOR LOST ANY GOLD OZ THAT 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 17,839 contracts DOWN to 199,751. The December contract month is still highly elevated compared to a year ago. On Monday Nov 23/2015 comex reading day, we had a total of 133,160 contracts standing ( a loss of 27,109 contracts from Nov 20/2015 AND YES IT WAS A RAID DAY) 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 0 notice(s) filed for NIL oz of gold.
And now for the wild silver comex results. Total silver OI FELL by 1025 contracts from 169,977 DOWN TO 168,952 as the price of silver FELL BY $0.10 with YESTERDAY’S trading. 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 4 and thus a GAIN of 3 contracts. We had 0 notice(s) filed yesterday so we gained 3 contracts or an additional 15,000 oz will stand for delivery in this non active month of November. The next major delivery month is December and here it FELL BY 8,921 contracts DOWN to 56,352. The December contract month is about even compared to a year ago. On Nov 23/2015 reporting day, we had a level of 55,544 contracts having lost 5,508 contracts on the day).
In silver had 0 notice(s) filed for NIL oz