Backwardation/Premiums Still Climbing – SGE Physical Gold vs COMEX/LBMA Paper Contracts
Gold at (1:30 am est) $1190.60 UP $12.40
silver at $16.58: UP 12 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:
MONDAY gold fix Shanghai
Shanghai morning fix Nov 28 (10:15 pm est last night): $ 1221.43
NY ACCESS PRICE: $1192.80 (AT THE EXACT SAME TIME)/premium $28.63
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$ 1218.64
NY ACCESS PRICE: 1192.20 (AT THE EXACT SAME TIME/2:15 am)
HUGE SPREAD 2ND FIX TODAY!!: $26.44
China rejects NY pricing of gold as a fraud
London Fix: Nov 28: 5:30 am est: $1189.10 (NY: same time: $1189.50 5:30AM)
London Second fix Nov 28: 10 am est: $1187.00 (NY same time: $1187.20 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 7799 CONTRACTS to an OI level of 415,587 AS GOLD FELL $10.90 with YESTERDAY’S trading In the front month of November we had 29 notices standing for a LOSS of 192 contracts. We had 0 notices served ON FRIDAY so we LOST 192 GOLD CONTRACTS OR AN ADDITIONAL 19200 OZ WILL NOT STAND FOR DELIVERY IN THIS NON ACTIVE DELIVERY MONTH OF NOVEMBER. The next contract month and the biggest of the year is December and here this month showed a DECREASE of 28,513 contracts DOWN to 77,556. The December contract month is still highly elevated compared to a year ago. On FRIDAY Nov 27/2015 comex reading day, we had a total of 24,018 contracts standing ( a loss of 36,141 contracts from Nov 25/2015. To give you more detail as to how the front month of December/2015 contracted, the final Nov 30 contract had an OI of 7,849 contracts standing or 24.41 tonnes standing as we lost 16,169 contracts.) The OI for the entire complex was around 393,000 or similar to the low readings this year. It certainly emphasizes the huge demand for physical gold.We have exactly 2 more trading days left. 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. It looks to me like we will have 22,000 contracts or higher standing: 2.2 million oz or 68.4 million oz. That should break the bank.
Today, we had 2 notice(s) filed for 200 oz of gold.
And now for the wild silver comex results. Total silver OI FELL by 1409 contracts from 167,583 DOWN to 166,174 as the price of silver FELL BY $0.08 with FRIDAY’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 0 contracts. We had 0 notice(s) filed yesterday so we neither lost nor gained any contracts (oz) that will stand for delivery in this non active month of November. The next major delivery month is December and here it FELL BY 13,247 contracts DOWN to 27,148. The December contract month is a little elevated compared to a year ago. On Nov 27/2015 reporting day, we had a level of 16,868 contracts having lost 10,053 contracts on the day. On the final day of November/2015, we had 5,975 contracts stand for 29.875 million oz. We lost 4078 contracts on the last day prior to first day notice. It looks like we will end up with around 6,000 contracts standing for 36 million oz.
In silver had 1 notice(s) filed for 5,000 oz