Backwardation/Premium Physical Gold Remains Above vs COMEX/LBMA Paper Gold
Gold at (1:30 am est) $1166.90 DOWN $3.00
silver at $16.43: up 2 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:
THURSDAY gold fix Shanghai
Shanghai morning fix Dec 1 (10:15 pm est last night): $ 1188.46
NY ACCESS PRICE: $1169.20 (AT THE EXACT SAME TIME)/premium $19.26
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$ 1199.35
NY ACCESS PRICE: 1175.35 (AT THE EXACT SAME TIME/2:15 am)
HUGE SPREAD 2ND FIX TODAY!!: $24.00
China rejects NY pricing of gold as a fraud
London Fix: Dec 1: 5:30 am est: $1168.75 (NY: same time: $1168.15 5:30AM)
London Second fix Dec 1: 10 am est: $1161.85 (NY same time: $1162.00 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 4,561 CONTRACTS to an OI level of 401,100 as GOLD FELL $17.10 with YESTERDAY’S trading. We are now in the contract month of December and it is the biggest of the year. here the front month of December showed a DECREASE of 5719 contracts DOWN to 6832.We had 4938 notices served upon yesterday so as I promised we lost 781 contracts or 78,100 oz will not stand for delivery and no doubt where paper settled.
For the next delivery month of January we had a loss of 115 contracts down to 2386. For the next big active delivery month of February we had a gain of 2283 contracts up to 273,896
We had 1,569 notices filed upon today for 1,56900 oz