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Subject Maguire: “Silver at on point at the highs in Shanghai was trading at a $1.75 premium.- that's ludicrous"

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[quote:Anonymous Coward 3297006:MV8yMDkwNDY2XzUxMURGOTc1]
Eric King:  “Andrew, for the people out there that are in silver specifically, what are you seeing on the arbitrage?”

Maguire:  “Silver at on point at the highs in Shanghai was trading at a $1.75 premium.  That means a single contract was trading at an $8,694 premium to a Comex contract.  That’s ludicrous.  That really gives you a much better picture (of what’s going on in the physical market).

There are reasons why silver or gold may trade at a premium in Shanghai, but not to those kind of degrees.  We’re now reaching extremes, the kind of extremes you rarely see.  And the kind of extremes we saw, not even that high (in terms of premium), back in August when we bottomed.

Silver is migrating into a much more physical market and we are seeing very few participants wanting to play in this rigged futures market any more.  What I am certain of  (right now) is that the physical market has diverged to extremes.  As a result it will overrun these short positions.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/12/20_Maguire_-_Physical_Silver_Market_Has_Now_Diverged_To_Extremes.html
[/quote]

Original Message Eric King: “Andrew, for the people out there that are in silver specifically, what are you seeing on the arbitrage?”

Maguire: “Silver at on point at the highs in Shanghai was trading at a $1.75 premium. That means a single contract was trading at an $8,694 premium to a Comex contract. That’s ludicrous. That really gives you a much better picture (of what’s going on in the physical market).

There are reasons why silver or gold may trade at a premium in Shanghai, but not to those kind of degrees. We’re now reaching extremes, the kind of extremes you rarely see. And the kind of extremes we saw, not even that high (in terms of premium), back in August when we bottomed.

Silver is migrating into a much more physical market and we are seeing very few participants wanting to play in this rigged futures market any more. What I am certain of (right now) is that the physical market has diverged to extremes. As a result it will overrun these short positions.

[link to kingworldnews.com]

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