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Albert Sung is the author of the Katchum Macro-Economic Blog, monitoring breaking economic news from a day to day basis. He started investing in 2008 because of the economic crisis and holds a masters degree in chemical engineering. Previously, he worked several years as a process engineer at... More
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  • Silver Prices Between Asia And London Start Decoupling 1 comment
    Dec 21, 2012 6:10 PM | about stocks: SLV

    Andrew Maguire on King World News reveals a shocking truth about the dislocation of silver prices between Asia and London. I already warned in February 2012 that prices between Asia and the Western world would diverge from each other and that manipulation of prices in the U.S. and London will end because of the emergence of Asia and their Shanghai Metals Market, which just recently started trading in silver.

    Now, finally, the decoupling is happening and this should be an eye opener for everyone.

    Apparently, silver traded at $29.61/ounce in London, while it traded at $32.50/ounce in Shanghai. That's a premium of 10% over London Spot Price. When the market closed it still traded at around 4% premium.

    Of course there could be price disruptions between the two markets because of domestic spot trading. But 10% is a bit over it.

    So you need to ask yourself the question, which of the two is the real price of silver? I bet you that the Shanghai price of silver will eventually win over the Comex silver price as Shanghai is backed by the real thing, while the Comex is backed by almost nothing.

    I would like to monitor this premium, but I can't find live quotes anywhere on the internet (which are free of charge). If I could monitor this premium, it could be a tool to predict if silver prices are likely to go up or down. The higher the premium, the higher the chance that silver will go up in London.

    Disclosure: I am long AGQ, PSLV.

    Stocks: SLV
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  • The_Hammer
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    physical silver time. the masses have not even caught on yet after 10 years.
    21 Dec 2012, 06:20 PM Reply Like
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