SHANGHAI FIX PREMIUM OVER $12.00 HIGHER THAN NY/JAPANESE BOND YIELDS RISE ABOVE ZERO CREATES A NEW HEADACHE FOR BANK OF JAPAN: WILL THEY PURCHASE HUGE AMOUNTS OF BONDS TO KEEP THE RATE AT ZERO?
from Harvey Organ:
CHINESE YUAN COLLAPSES: CNY 6.8790 WHILE OFFSHORE CNH: 6.8992/HUGE AMOUNTS OF USA DOLLARS LEAVE CHINESE SHORES/AS MORTGAGE RATES RISE TO ALMOST 4%, MORTGAGE APPLICATORS COLLAPSE IN THE USA/CHAOS IN INDIA AS THERE IS NO LIQUIDITY AND GOODS ARE NOT MOVING: LINEUPS TO BUY PHYSICAL GOLD.
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.
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