Backwardation/Premium Slides, Still Above $20 SGE Gold vs COMEX/LMBA Paper
Gold at (1:30 am est) $1170.80 DOWN $17.10
silver at $16.41: down 25 cents
Access market prices:
THE DAILY GOLD FIX REPORT FROM SHANGHAI AND LONDON.
The Shanghai fix is at 10:15 pm est last night and 2:15 am est early this morning
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:
WEDNESDAY gold fix Shanghai
Shanghai morning fix Nov 30 (10:15 pm est last night): $ 1213.66
NY ACCESS PRICE: $1190.80 (AT THE EXACT SAME TIME)/premium $22.86
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$ 1210.24
NY ACCESS PRICE: 1189.14 (AT THE EXACT SAME TIME/2:15 am)
HUGE SPREAD 2ND FIX TODAY!!: $21.10
China rejects NY pricing of gold as a fraud
London Fix: Nov 30: 5:30 am est: $1187.40 (NY: same time: $1188.90 5:30AM)
London Second fix Nov 30: 10 am est: $1178.10 (NY same time: $1178.10 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.
Today the bankers orchestrated another raid on gold and silver as today is options expiry for the OTC contracts in London (and LBMA). The total gold OI of 405,000 contracts (and tomorrow it will probably be lower), is around 8,000 contracts higher than in late November 2015 when the price of gold hits is nadir Nov 23/2015 (OI = 413,000 contracts/price $1065.25). I believe that all the specs have been thoroughly washed out and rinsed three times over. Gold and silver will advance starting tomorrow.
Let us head over to the comex:
The total gold comex open interest FELL by 6.540 CONTRACTS to an OI level of 405,661 as GOLD FELL $2.90 with YESTERDAY’S trading. In the front month of November we had 7 notices left to be served upon and that was what we got late last night. That completes November with 2,699 notices filed for 269,900 oz or 8.3950 tonnes. The next contract month and the biggest of the year is December and here this month showed a HUGE DECREASE of 18,222 contracts DOWN to 12,551. Thus I was pretty close in my estimation as to what will stand: 39.038 tonnes of gold. (12,551 x 100 oz = 1,255,100 oz or 39.038 tonnes) To give you a good idea of increased demand from last yr: on Nov 30/2015: 24.41 tonnes stood for delivery.
For the next delivery month of January we had a loss of 51 contracts down to 2501. For the next big active delivery month of February we had a gain of 12,423 contracts up to 271,613.
Today, we had 7 notice(s) filed for 700 oz of gold in November. We had 4,938 notices filed upon for the initial first day notice reading for December.
And now for the wild silver comex results. Total silver OI FELL by 6540 contracts from 163,166 DOWN TO 156,626 even though the price of silver ROSE BY $0.08 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 0 and thus the total notices filed for the entire month remain at 469 contracts or we have a final standing of 2,345,000 oz. The next major delivery month is December and here it FELL BY 8,799 contracts DOWN to 3056 CONTRACTS . As I stated yesterday: “The December contract month is WORSE compared to a year ago.” The total number of silver ounces standing for delivery in Dec 2016: 15,280,000 oz
The next non active delivery month is January and here the OI fell by 139 contracts down to 3655.
The next big active delivery month is March and here the OI rose by 2173 contracts up to 126,459 contracts.