Colin van Dongen @Vans808: "The JPM "Paper" Crash vs...."

United Kingdom

The JPM "Paper" Crash vs. The Shanghai Physical Reality 🥇🥈 If JPMorgan’s massive Put position and the "release" of circuit breakers on Friday afternoon were a desperate attempt to cool the market, the early data suggests it has backfired. While the COMEX (US paper market) was hammered down, the Shanghai Gold Exchange (SGE) is refusing to follow. We are currently witnessing a historic "fracture" between Western paper trading and Eastern physical demand. The Price Gap (As of Feb 1st Close): • Silver: COMEX (Paper) $84.63 vs. Shanghai (Physical) $124.83 * Gold: COMEX (Paper) $4,887.07 vs. Shanghai (Physical) $5,209.62 The Reality: By crashing the Western "screen price," the banks have effectively put silver on a 47% clearance sale for the East. This won't cool the market; it will accelerate the drainage of Western vaults as physical metal flows to where the premium is highest. When the COMEX finally runs dry of deliverable metal, the US price won't just "rise" it will likely have to gap up $30–$40 overnight to re-couple with the physical reality in Shanghai. Holding my miners through this volatility. The paper market is broken, but the physical market has never been stronger. Gold: $AEM (Agnico Eagle Mines Ltd) $HMY (Harmony Gold Mining Co Ltd-ADR) $ALTN.L (Altyngold Plc) $SRB.L (Serabi Gold Plc) Silver: $PAAS (Pan American Silver Corp) $AG (First Majestic Silver Corp) $HL (Hecla Mining Company) Royalty: $WPM (Wheaton Precious Metals Corp) $TFPM (Triple Flag Precious Metals Corp) $GROY (Gold Royalty Corp) #Gold #Silver #ShanghaiPremium #Commodities #JPMorgan