Shanghai

Shanghai Gold Premium Skyrockets to New Highs

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One of the most important features of this blog is that you get real time alerts on important data.
One of those data is the premium I see on the Shanghai precious metals market. And today we see a huge increase in premium in gold (Chart 2). Gold premiums to London bullion price have reached 2.6%, the highest since I monitored it. Silver premiums also shot up to 3.8% (Chart 1).
That’s a bullish sign.
James Turk talked about these huge premiums in Asia:

The huge premiums over spot in Asia and the long delivery times in London clearly show that this takedown in gold over the past few weeks was all about what was taking place in the paper market.

Chart 1: Silver Premium Shanghai to London

Chart 2: Gold Premium Shanghai to London

Shanghai Gold Premium Spike

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A small alert here. Shanghai gold premium over spot price has reached an all time high, since I monitored it. It reached 0.72% over spot. Very interesting to notice.

Either the Chinese are lagging on their gold market, or we’re going to see an increase in the gold price.

Bitcoin Hits All Time High

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Just to remind you that the bitcoin price has hit new all time highs at $35.

Chart 1: Bitcoin Price

With the high correlation between bitcoin and gold, there is no way that gold won’t go higher.

Chart 2: Gold Price

As a matter of fact, Shanghai silver premiums hit a high of 4.36% today.

Chart 3: Shanghai Silver Premium

And even better, lease rates are hitting new highs.

Chart 4: Gold Lease Rate
While stress is still building up with record low GOFO rates.
Chart 5: Gold Forward Rate
People say I try to time the market, I say knowledge is power.

Update: Precious Metals Premiums

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Just wanted to give a status update on the premiums.

The trend in premiums is still in an upward phase. A little side note, the bitcoin price has skyrocketed and continues to do so.

How to Monitor the Gold and Silver Premium Between Shanghai and London

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He who searches, will find what he’s searching for (or something like that).

In a previous post here, I noticed that the silver prices between Shanghai and London were decoupling, with premiums as high as 10%. I didn’t know where to find this Shanghai Exchange silver price.
But today I think I found the site that gives these gold and silver prices (for free).
You can find it on Bloomberg: 
And when Bloomberg restricts access to their site, you can find it here: http://www.sge.sh/publish/sgeen/sge_price/sge_price_daily/9550.htm
Gold for example: On February 1 the Shanghai gold price was: 334.63 RMB/g. Which is 39339 Euro/Kg at 8.506 EUR/CNY. The London price of gold on 1 February 2013 was 39297 Euro/Kg. So the premium was 0.1% (which is normal because there shouldn’t be a premium).
Silver for example: On 21 December 2012 the Shanghai silver price was: 6.277 RMB/g. Which is 760.8 Euro/Kg at 8.25 EUR/CNY. The London price of silver on 21 December 2012 was $29.89/ounce or 22.61 euro/ounce at 1.322 EUR/USD. That’s 726.9 Euro/Kg or indeed a 5% premium as was reported by Andrew Maguire.
This also means that I’m going to monitor the Shanghai Silver and Gold premiums to London market with this data on a daily basis!