Shanghai Gold Premium Skyrockets to New Highs

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