Backwardation/Premium Slides A Little More As Digital Gold and Silver Move Higher
Gold at (1:30 am est) $1198.90 UP $3.30
silver at $16.78: unchanged
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 FIRST morning fix Jan 12/17 (10:15 pm est last night): $ 1211.01
NY ACCESS PRICE: $1197.00 (AT THE EXACT SAME TIME)/premium $14.01
Shanghai SECOND afternoon fix: 2: 15 am est (second fix/early morning):$ 1216.25
NY ACCESS PRICE: $1200.50 (AT THE EXACT SAME TIME/2:15 am)
HUGE SPREAD 2ND FIX TODAY!!: $15.75
China rejects NY pricing of gold as a fraud/arbitrage will now commence fully
London Fix: Jan 12/2017: 5:30 am est: $1206.25 (NY: same time: $1204.60 (5:30AM)
London Second fix Jan 12.2017: 10 am est: $1205.05 (NY same time: $1204.80 (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 1,589 CONTRACTS UP to an OI level of 445,590 AS THE PRICE OF GOLD ROSE $11.40 with YESTERDAY’S trading. We must have had some short covering as I would have expected that the OI would have been much higher. 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 1 contract(s) DOWN to 135. We had 9 notices filed yesterday. so we LOST 1 contract(s) or AN ADDITIONAL 100 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 12,135 contracts DOWN to 241,061. March had a gain of 67 contracts as it’s OI is now 528. We are on a par with respect to OI when we compare data for open interest Feb 2016.
We had 0 notice(s) filed upon today for nil oz
And now for the wild silver comex results. Total silver OI ROSE by 3,491 contracts FROM 165,040 UP TO 168,531 AS the price of silver FELL BY $0.02 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 4 contracts falling TO 230. We had 0 notice(s) filed on yesterday so we lost 4 silver contracts or an additional 20,000 oz will not stand for metal in this non active month. The next non active month of February saw the OI rise by 5 contract(s) RISING TO 207.
The next big active delivery month is March and here the OI ROSE by 1774 contracts UP to 133,405 contracts.
We had 0 notice(s) filed for nil oz for the January contract.