>>20488537You bet. The opportunity for arbitrage was already crazy good when the delta was around 3 bux, but now it's plain up stupid.
I don't even comprehend how this is possible on global markets, there must be something we are missing who could explain such a difference..
I mean, China doesn't even have to go *that* hard to vaccum silver from the West. The transfert was already taking place with $2-3 difference.
Almost 6 bux?? That's just a flex at this point, or a declaration of war.
>>20488584There are 3 big market places for precious metals : COMEX/NYMEC (Jew York), LBMA (London), SHFE/SGE (Shanghai).
Those market places serves as price settlement points. Historically, it was NYC leading the dance and the others pretty much followed the prices dictated by them (them being BlackRock/CME Group & JPMorgan, since they are the owners of silver futures systems like SLV or microsilver).
But Shanghai since few months declared secession and is constantly pricing silver (and gold to a lesser extent, +1% avg) higher than the western market places. At first it was just few cents above, then 2 bux, but now it's $5.70 above the COMEX. It result in a lot of physical silver getting drained from the US and ending up in China. Imagine you are a trader, it's the easiest money ever to settle few SLV contracts (5Koz per contract), then ship it to Shanghai and pocket the difference minus the shipping fees.
That's sending a pretty strong message :
>if you don't price it higher too, you'll end up with nothingAnd apparently even at those prices the silver demand is very strong in China.
That's probably why the prices rallyed the past few months, with the LBMA/COMEX trying to match up and stop the bleeding, but China continue to price it higher anyway.
I hope that's clear enough.
