2012年12月22日星期六

Maguire - Shocking $2.89 Premium For Physical Silver In China





After boldly calling for a bottom in the gold and silver markets yesterday, today whistleblower Andrew Maguire told King World News that the premium for physical silver expanded to shocking and “unprecedented” levels in China.  Maguire also spoke with King World News about the challenges the shorts are now facing in both the gold and silver markets.  


This is the fourth in a series of interviews with Maguire lifting the curtain on what is going on behind the scenes in the gold and silver war.
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Eric King:  “Andrew, yesterday you were saying we had hit a bottom, and certainly the markets are acting that way with gold up around $10.  Your thoughts here because I think for some people it felt like the end of the world on that (recent) price drop.”


Maguire: “Well, Eric, the difference today is number one, note that the dollar has not been under attack.  So you don’t really have any government intervention (in gold) today.  You’ve also got central bank buying that has come in (to the gold market) in very large size....

“It’s (central bank buying is) really forcing bullion banks to go on the bid.  So you’ve got a bit of a perfect storm there.  I think the risk to the shorts here is if they cannot defend this 200 day moving average, which is currently around the $1,663 area (capping the upside advance), then we will see some technical damage (this time) to the upside.

We’re running into the end of the year.  We predicted there would be some short position squaring into the end of the year, but I would have thought they would have liked to do that closer to the end of the year.  If they (commercials) fail to hold gold (below the 200 day moving average), then (as I said) the technical damage will be done to the upside (this time).”

Maguire also added: “One of the things I wanted to talk to you about today was something I saw in Shanghai early this morning.  Eric, I had to double-check, in fact I had to triple-check.  We’re talking about the kind of divergence (in the physical market) now that’s unprecedented.

Today I looked at the opening premiums and there was a $2.89 disparity in silver.  I’m not talking gold.  When spot silver was trading in London at $29.61, silver actually traded at $32.50 (in Shanghai). 

If you take an equivalent Comex contract, and I realize spot isn’t Comex, but if you take an equivalent 5,000 ounce Comex contract, that equates to a $14,430 premium per contract.  I mean it’s ludicrous.  There are reasons why you may or may not have a premium in Shanghai, but not to that extreme.

Shanghai (softened but) still closed at a $6,100 premium to equivalent Comex contracts.  So what we’re saying here is that the divergence has now become ridiculous.  I mean these high and low closing premiums literally illustrate the massive divergence between the paper market (and the physical market).

And, Eric, this is on an exchange (Shanghai) that 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.

You’ve (also) got the short-selling algorithms, and they have absolutely no or little if any input relating to the physical market.  So if this price turns against them, they are not going to understand why it has turned.  They won’t understand the fact that central banks have been buying 6, 12, 20 (tons of gold), and I still haven’t even got the numbers for today, but there was very large physical take-up (today as well).

So when it (price) turns, they are not going to understand what’s happened, they will just follow it.  But the concern to the bullion banks (here) is they are fully aware of the physical drain, and I absolutely guarantee you that they are going long on this final stage of the selloff.

Price up to now has really been assisted by (US) government defense of the dollar in the over-the-counter FX gold markets, but the central banks (out of the East) and the bullion banks are (now) jointly buying this discount.”

This is the fourth in a series of interviews with Maguire lifting the curtain on what is going on behind the scenes in the gold and silver war.  There is an incredible amount of information which has not been included in these short write-ups.  The eagerly anticipated KWN audio interview with Andrew Maguire is available now and you can listen to it by CLICKING HERE.
 
 


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