Backwardation/Premium SGE Physical Gold vs COMEX/LBMA Paper Continues to Slide
Gold at (1:30 am est) $1195.60 UP $11.40
silver at $16.78: DOWN 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:
TUESDAY gold fix Shanghai
Shanghai FIRST morning fix Jan 11/17 (10:15 pm est last night): $ 1207.31
NY ACCESS PRICE: $1187.50 (AT THE EXACT SAME TIME)/premium $19.80
Shanghai SECOND afternoon fix: 2: 15 am est (second fix/early morning):$ 1205.91
NY ACCESS PRICE: $1189.40 (AT THE EXACT SAME TIME/2:15 am)
HUGE SPREAD 2ND FIX TODAY!!: $16.01
China rejects NY pricing of gold as a fraud/arbitrage will now commence fully
London Fix: Jan 11/2017: 5:30 am est: $1187.55 (NY: same time: $1187.70 5:30AM)
London Second fix Jan 11.2017: 10 am est: $1178.55 (NY same time: $1180.10 (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 ROSE BY 3,603 CONTRACTS UP to an OI level of 444,001 AS THE PRICE OF GOLD ROSE $0.70 with YESTERDAY’S trading. We are now in the contract month of JANUARY and it is one of the poorest deliveries of the year.
With the front month of January we had a LOSS of 25 contracts DOWN to 136. We had 23 notices filed so we LOST 2 contracts or AN ADDITIONAL 200 oz WILL NOT STAND for gold in this non active delivery month of January. For the next big active delivery month of February we had a LOSS of 10,543 contracts DOWN to 253,196. March had a gain of 112 contracts as it’s OI is now 461.
We had 0 notice(s) filed upon today for nil oz
And now for the wild silver comex results. Total silver OI FELL by 307 contracts FROM 165,347 DOWN to 165,040 AS the price of silver ROSE BY $0.17 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).
We are now in the non active delivery month of January and here the OI FELL by 124 contracts falling TO 234. We had 124 notice(s) filed on yesterday so we neither gained nor lost any silver contracts (oz) standing for metal in this non active month. The next non active month of February saw the OI FALL by 1 contract(s) FALLING TO 202.
The next big active delivery month is March and here the OI FELL by 1607 contracts DOWN to 131,631 contracts.
We had 0 notice(s) filed for nil oz for the January contract.