Whilst many are focused on QE4 and the manipulation of the spotprice, I came across an interesting point of view which could eventually turn the Bankers world upside down if something else doesn't get there first.
Are we starting to witness the early stages of a paper & physical split in the market? How long before Shanghai overtakes the Comex? Will it get there or is there something else that is going to take place before then?
A couple of things has lead me to ask the above questions.
Below is a snippet from a blog I visited which was posted on the 22nd December.
=========================================================== "Harvey: The big news on Friday was the big premium for physical silver in Shanghai. While silver traded at $29.61 in USA, over in Shanghai silver was trading at $32.50 a premium of $2.89 per oz. The Chinese are willing to pay more to get the real stuff. Expect arbitrage to intensify between these two markets.
Andrew Maguire (via King World News): London metals trader and silver market whistleblower Andrew Maguire reports tonight that premiums for delivery of physical silver in Shanghai today reached "unprecedented" and "ludicrous" levels, so distortive was the Western central bank intervention against the monetary metals in London and New York. Maguire says the bullion bank agents of the central banks "are fully aware of the physical drain" caused by their paper raid, "and I guarantee you that they are going long on this final stage of the selloff." (Shanghai) within the next two years is actually going to become the world hub of physical gold and silver trading. It’s going to have its own fixes. So I think they [the manipulators] really pushed it a little too far today. DS: As Maguire knows, the Western banks are aware of the effects of what they are doing. Since we would have to give them the benefit of the doubt and grant that they are not suicidal, the most logical conclusion barring suicide is that the plan is coming to a conclusion. This charade will not go on for two more years, so Shanghai is not a concern." ===========================================================
That is a massive arbitrage between Comex and Shangai.
