Physical Gold Arbitrage Continues Growing – Massive $12.00 at Afternoon Close
Gold closed at $1223.60 DOWN $0.60
silver closed at $16.92: DOWN $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 16 (10:15 pm est last night): $ 1240.41
NY ACCESS PRICE: $1231.65 (AT THE EXACT SAME TIME)/premium $8.76
Shanghai afternoon fix: 2: 15 am est (second fix/early morning): $1241.65
NY ACCESS PRICE: 1229.65 (AT THE EXACT SAME TIME/2:15 am)
HUGE SPREAD 2ND FIX TODAY!! $12.00 dollars
London Fix: Nov 16: 5:30 am est: $1225.70 (NY: same time: $1226.40 5:30AM)???
London Second fix Nov 16: 10 am est: $1229.20 (NY same time: $1227.30, 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 9,537 CONTRACTS to an OI level of 479,237 DESPITE THE FACT THAT GOLD ROSE $2.80 with YESTERDAY’S trading. In the front month of November we had 29 notices standing for a LOSS of 49 contracts. We had 51 notices served on yesterday so we GAINED 2 contracts or 200 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 11,594 contracts down to 237,109. The December contract month is still highly elevated compared to a year ago. On Tuesday Nov 17/2015 comex reading day, we had a total of 194,026 contracts standing ( a gain of 2,483 contracts from Nov 16/2015) 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 5 notice(s) filed for 500 oz of gold.
And now for the wild silver comex results. Total silver OI FELL by 1388 contracts from 176,219 DOWN TO 174,831 as the price of silver ROSE BY $0.15 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 1 and thus a loss of 111 contracts. We had 112 notices filed yesterday so we gained 1 contract or an additional 5,000 oz will stand for delivery in this non active month of November. The next major delivery month is December and here it FELL BY 2,263 contracts DOWN to 86,293. The December contract month is also highly elevated compared to a year ago. On Nov 17/2015 reporting day, we had a level of 71,593 contracts having gained 1278 contracts on the day).