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How To Monitor The Gold And Silver Premium Between Shanghai And London

|Includes:SPDR Gold Trust ETF (GLD), SLV

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. It is very important to monitor this premium because it might indicate that demand is growing or that decoupling is occurring.

But today I think I found the site that gives these silver (and gold) prices.

You can find it on Bloomberg:

http://www.bloomberg.com/quote/SHGFAUTD:IND

http://www.bloomberg.com/quote/SHGFAGTD:IND

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%.

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!

Disclosure: I am long AGQ.

Stocks: GLD, SLV