Tag - Gold Premiums

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Friday, February 12 2021

Coin Premiums - Premiums Over Spot Prices

Premiums rising - physical vs paper

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Tuesday, February 2 2021

Investor gold demand running at red hot levels

Demand for gold and silver coins for delivery is running red hot exacerbated by tightening supplies and delayed releases of new coinage from sovereign mints. As a result, premiums – the amount investors pay over a coin’s melt value – have begun to move higher.

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Friday, May 1 2020

What Caused the New York vs. London Gold Price Spread and Why it Persists

The spread between the New York futures and London spot gold price was initially caused by logistics and manufacturing constraints, and likely persists because of credit restrictions.

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Tuesday, March 24 2020

Gold bid/offer spreads blow out to $100 in loco London market

The bid/offer spread - the difference between the buying and selling prices quoted in the interbank market - is typically around 0.06%. That is tight ! Today however that spread has blown out to over $100 or 7% - an increase of over 100-fold. Evidently the lack of liquidity in the spot market has meant that market-makers are clearly reluctant to take on a trade. With physical supply much diminished, it follows that taking on a position carries significant inherent risk - especially with physical supply drying up rapidly. In short, trading gold has become expensive - not only is underlying price much elevated, but the cost of getting in and out has risen very considerably. It is a reflection of our times.

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Monday, December 18 2017

Performance Bond Requirements: Metal Margins

CME drops Gold margins by 10.1% & Silver margins by 9.6%

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Wednesday, April 26 2017

Indian physical gold buying may be behind Dubai tightness

A pick-up in buying demand for physical gold in India, the world's number two consumer of the yellow metal, was leading to tightness in the local Dubai market, sources said Tuesday.

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Friday, December 16 2016

SGE Intraday Premiums

SGE gold premiums hit $44 on Friday

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Asia Gold-China premiums jump to 3-yr highs, Indian demand stays weak

Gold premiums in China against the international benchmark rose to over $40 an ounce this week, the highest since January 2014, according to Thomson Reuters data. Last week, premiums were quoted around $28-$30.

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Saturday, December 10 2016

Asia Gold-China premiums near 3-yr high, Indian demand remains subdued

Gold premiums in China held near three-year highs this week amid fears of limited supply of the precious metal, while demand in India remained subdued despite lower prices due to a severe cash crunch.

The import curbs may be part of China's efforts to limit outflows of the yuan after the currency's slide to its weakest in more than eight years, traders said. China allows only 13 banks to import gold, including three foreign lenders, according to the Shanghai Gold Exchange.

"The news on import restrictions is keeping the premiums high and there has been no real demand," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

China gold premium at $28-$30/oz this week

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Friday, December 2 2016

Major gold price divergence between Shanghai and London

As we pointed out here yesterday a part of the reasoning behind the higher SGE benchmark price levels is something of a squeeze on Chinese gold supply which is local market specific – particularly now that gold traders and fabricators may be looking to build stocks ahead of anticipated additional demand from the Chinese New Year holiday, and a reported reduction in gold import quotas by the Chinese Government to curb capital outflows.

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Tuesday, November 29 2016

Shanghai Gold Premium hits multi-year high

The Shanghai Gold Exchange premium soared to multi-year highs overnight, with Commerzbank citing recent news reports that China’s government may restrict the number of import licenses and MKS (Switzerland) S.A. reporting that dollar weakness also boosted the appeal of gold.

“After opening at an onshore premium of around $22 over loco London gold, interest drove the premium as high as $28 and with it spot gold to $1,197.70, before participants took the opportunity to buy the dollar and cap any further gains,” MKS added.

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Thursday, November 10 2016

Gold Price Skyrockets in India after Currency Ban

As I write this in the morning of 9th November 2016, there are huge lines forming outside gold shops in India — and gold traded heavily until late into the night yesterday. Depending on who you ask, the retail price of gold has gone up between 15% and 20% within the last 10 hours.

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Thursday, October 13 2016

Gold Prices Just Did Something They Haven’t Done All Year

Finally the global gold market is getting some good news from its top consuming nation — India.

Reports earlier this week suggest that something very unusual has just happened with India’s local gold prices: they’ve jumped to a premium above worldwide bullion prices.

That’s big news because — so far this year — India’s prices have been lagging the rest of the world. With gold here selling at discounts of $50 or more per ounce below average global prices.

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Saturday, September 17 2016

Indian gold market eyes return to price parity as early next week

A growing number of Indian gold dealers expect the local price paid for gold which has been at a discount to the international spot price nearly all year to return to parity in the near term, sources said Thursday.

The discount paid by local dealers and traders has been reported as low as $10/oz this week, with some reporting single-digit discounts as demand starts to pick up in the run-up to the Indian wedding and festival season in the fourth quarter.

The discount was as high as $75-100/oz as recently as July when gold jumped to two-year highs above $1,375/oz and with demand in India typically low in the summer months.

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Thursday, July 14 2016

Govt mobilises 3.1 tonnes of gold under monetisation scheme

Government today said it has netted 3.1 tonnes of idle household and temple gold under the monetisation scheme since its launch in November 2015.

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Saturday, June 11 2016

Indian gold discounts hit widest in 3-1/2 months on muted Asian demand

Gold discounts in India expanded to their widest in nearly 3-1/2 months this week amid lacklustre demand elsewhere in Asia, with bullion's recent rally dampening retail demand.

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Tuesday, December 1 2015

How are Premiums Calculated

Coin & Bar premiums & how they work - Infographic by JM Bullion

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Saturday, June 6 2015

India gold premiums plunge on murky met forecast

The gold premiums in Mumbai dropped significantly following India’s meteorological department forecasting weak monsoon season ahead. The yellow metal continued to trade more or less at parity to $0.50 premium with international prices. Also, gold for immediate delivery was available at discounts of $3-$4 per ounce on recycled gold bars.

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Tuesday, November 4 2014

Anticipating the end of the gold-stock crash

Incredibly, both the Central Fund of Canada (CEF) and the Central Gold Trust (GTU) are now trading at discounts to their net asset values of almost 10%. This means that purchasing CEF near its current price is roughly equivalent to paying $1050/oz for gold and $14.50/oz for silver. The unusually large discounts at which these bullion funds are now trading is an indication that gold and silver are almost as out-of-favour as they ever get.

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Friday, October 10 2014

Chinese gold buying picks up after holiday; Indian premiums rise

Buying activity in China's physical gold exchange ticked up this week, indicating retailers in the top consumer of the metal saw good sales during the week-long National Day holiday.

Prices on the Shanghai Gold Exchange - the platform for all physical trades in China - were about $5-$6 an ounce higher than the global benchmark XAU=, compared with about $3 before Chinese markets closed for the holiday.

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