Shanghai Gold Exchange and Other Topics

By: David Jensen | Wed, Aug 20, 2014
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Interview with Jay Taylor on August 20, 2014 discussing acceleration of the price differential for precious purchased on physical metal exchanges vs virtual derivatives exchanges such as the LBMA and NY Comex. Physical silver is showing strongly accelerating price premia on physical exchanges vs LBMA/Comex markets.

Jay Taylor Interviews Daved Jensen MP3


1. LBMA GOFO positive with 1 month GOFO at .065%

2. Shanghai Gold Exchange and Shanghai Metal Exchange physical metals premia vs. LBMA paper contract pricing is increasing:

Standout is Shanghai physical silver price premium which is accelerating vs. LBMA and NY paper contract price. Up from 2.5% Shanghai price premium on July 1, 2014 to 7.8% today.

Standard Bank estimates 2014 palladium supply deficit to be 2 million oz. vs total global annual demand of 8.5 million oz (or 24% of total annual demand). Global palladium stockpiles estimated at 4 million oz which includes all ETF holdings and private Swiss vault holdings.

3. Trading on the LBMA - CPM Group est. in 2010 large majority (~85%) of daily global gross gold and silver trading volume is on the LBMA. Gross daily trading volume is estimated by LBMA's survey of traders to be 10x larger than end of day net settled volume posted on LBMA website.

4. New LBMA Silver Price to replace daily Silver Fix has gone live.



Author: David Jensen

David B. Jensen, P.Eng., LL.B., MBA
Vancouver, BC

David Jensen

David Jensen, P.Eng., LL.B., MBA, is a Professional Engineer with a degree in Engineering from the University of Waterloo in Canada (1987). He worked through 1993 on the F-5 Fighter Overhaul program and the Bombardier Regional Jet programs. Mr. Jensen then graduated with a LL.B. degree in corporate and commercial law from the University of Calgary (1997) and an MBA from Univ. of B.C., majoring in Logistics and Supply Chain Management (1999). Returning first to aviation then, after reading Austrian School Economics, Mr. Jensen transitioned to the mining industry from the aerospace industry in 2004 first through his mining industry consultancy, then as Vice President of Corporate Development for Western Copper Corp., and most recently as President and COO of Skyline Gold. Mr. Jensen currently serves as President and COO of a private mining company and provides strategic, operational, risk assessment, and precious metals consulting services through his consultancy, Jensen Strategic.

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