The Widening Gap Between Shanghai and London Benchmark Gold/Silver Prices

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by skwealthacademy
Monday, Sep 18, 2023 - 10:41

exploding price gap between Shanghai and NY/London benchmark gold and silver prices

Authored by J. Kim via skwealthacademy substack

Recently, Presidents of African nations Mali and Burkina Faso courageously stood up to perpetual NATO destruction of their nations by warning NATO that they would consider their intervention in Niger as a declaration of war on their nations. Part of this pushback against NATO policies in Africa by African Heads of State no doubt are a consequence of NATO’s shameless destruction of Libya at the behest of France in which NATO quickly converted one of the most economically thriving, stable and secular Muslim nations in Africa into a terrorist haven of chaos with open-air slave markets. This is part of a greater growing global pushback against all Western destructive Military Industrial Banking (MIB) complex initiatives around the world (of which the war against Russia in Ukraine firmly falls within these confines).

Along these lines,  one nation has remained relatively immune to this year’s excessive Western Central Bank meddling to suppress gold and silver prices. And that nation is China. The Chinese ability to establish higher physical gold (and silver) prices in Shanghai versus those being suppressed by the MIB complex in London and New York derivative markets is of critical importance to Russia and China’s unification attempt of non-NATO nations against Western Central Bankers in our ongoing global currency wars.  Higher benchmark gold and silver prices within China versus outside of its domestic borders provide hope for all non-NATO nations of eventually attaining freedom for prices received for their mined resources. Allow me to explain.

I’ve read a few articles over the years that have falsely attributed a growing divide between  Chinese spot gold prices and Western spot gold prices not to Western MIB price suppression of paper/synthetic gold prices (the real reason), but to periodic quotas that the PBOC has placed on gold imports. However, once we realize that Chinese government quotas, when they’ve been enforced, have been placed on commercial banking retail gold sales and not on imported gold volumes accrued for national reserves, then this fake Western narrative of a lack of China gold supply against growing demand completely falls apart. Furthermore,

(1) China leads the world in global gold production (Chinese gold production was nearly twice, 90%+ more, than US production in 2022); and

(2) China does not allow gold mined within domestic borders to be exported.

The above two facts oppose the Western narrative that dwindling gold supplies within Chinese borders are the reason for significant premiums in Chinese gold prices over US and UK prices. This Western narrative has been created by the Military Industrial Banking complex simply to throw the scent off of their constant downward manipulation of prices (which is consumed and then regurgitated by ignorant, uneducated Western analysts), despite the fact that numerous Western bankers from Barclays bank, Deutsche bank, JP Morgan and countless other banks have admitted in court, under oath, of manipulating gold and silver prices lower. The fact that many Western analysts today still successfully  deceive their readers into believing no gold and silver price manipulation occurs in the West is a damning indictment of the abject failure of our education system to educate and to inspire any level of critical thought.
Last year, the Shanghai spot gold price, towards the end of the year, was consistently $20 to $25 more than the London/New York spot gold price for large portions of the year. This year, this gap has recently widened to the $35+ range. If we look at the chart below, we can see that the Shanghai benchmark price for gold just a few days ago on 13 August was 455.39RMB/gAu.


exploding price gap between Shanghai and NY/London spot gold prices


If we perform simple mathematical calculations, using the Forex RMB:USD rate on that date and the conversion rate of 31.10348g/troy ounce, the USD spot price for gold on 13 August 2023 in Shanghai would be calculated as US$1950.41/AuOz. Compare this price to the London PM spot price of gold on 14 August 2023 (comparing prices for Monday in Asia to Monday in London) of a mere $1,903.75/AuOz, a $47/ounce lower price. Since Asia is one day ahead of the West, even if we compared the Shanghai PM price to the same day London AM price of $1,913.50, the Shanghai gold benchmark price was still $37 an ounce higher. And in the future, if Western Central Banking price suppression continues, I would not be surprised to see this gap in price grow to more than US$50/AuOz or US$75/AuOz. 

Remember,  I originally published this article on my substack newsletter here on 17 August, thus I provided my prediction of the $37 an ounce gap that existed at the time, growing to more than a $75 an ounce gap, more than a month ago. 

Allow me to provide a quick update to see if this gap between Shanghai spot gold and New York/London spot gold prices has grown since then. On 13 September, the Shanghai benchmark gold price was 474.58RMB/gAu. Using the Forex RMB:USD rate on that date of 0.137387, and the conversion rate of 31.10348g/troy ounce, the USD spot price for gold on 13 September 2023 in Shanghai was US$2,027.98/AuOz. The comparable London PM price fix for the same day (Asia is one day ahead) was a mere $1,908.55, translating into a same-day Shanghai benchmark price that was a whopping $119.43 an ounce higher, or 6.26% higher, than in the West, not only fulfilling my belief that the gap would grow to more than $75 an ounce, but also eclipsing a monumental $100/ounce difference in spot prices.

If you have been following me for a while, you know that I have written about the widening gaps in price between spot gold/silver and physical gold/silver prices for over a decade now. Joining these disparities in gold/silver prices across different markets, we now have widening gaps in spot precious metal prices between East and West. It doesn’t take a genius to understand that the Western Military Industrial Banking complex’s perpetual suppression of gold/silver prices in their controlled derivative markets in London/New York is solely responsible for these rapidly growing divides in prices. And this is precisely why I titled the original linked article on my substack platform above “Indisputable Proof of the Massive Misalignment Between Western PM Mining Share Prices and Reality” . In that article, I discussed what I believe will be a better alternative asset class for Western gold and silver mining shares moving forward from Q3 2023.

Why is this massive gap in spot gold prices so important? Some may say that even should the price difference grow larger, that it is irrelevant since China employs many regulations to ensure that no one can buy physical gold at much lower New York/London prices and then re-sell it in China, either digitally or through physical importation, to lock in risk-free profits in the millions of dollars. However, this ongoing, years-long development, is important, and very important, for the potentially much better gold/silver asset class I discussed in the above linked article, as this asset class can find a way to avoid the Western Military Industrial Banking complex price suppression of spot gold prices in London/New York should these shenanigans continue for the foreseeable future. That’s why a breakout from the normal 2.5% higher Shanghai gold benchmark prices to the now above a 6% increase is extremely important.


The Silver Benchmark Price Gap Between Shanghai and London/New York is Even Larger Than for Gold

Furthermore, one should not be surprised at all to learn that as massive as the percentage gap between Shanghai and London/New York gold benchmark prices have grown, that the percentage gap in the even more wildly manipulated Western silver derivative markets have caused the gap between Shanghai and London/New York silver benchmark prices to wildly even exceed the massive gap in gold benchmark prices.

exploding price gap between Shanghai and NY/London benchmark silver price

For example, on 11 September, the Shanghai PM silver benchmark price was, per the above, US$793.36977/1000gAg, which translated into a Shanghai silver benchmark price of $24.71 per ounce.The comparable London PM silver price fix (remember Asia is one day ahead of the West) was still only $23.01, translating into a whopping $1.70 an ounce higher silver benchmark price, or in percentage terms, a +7.39% higher price. If you are unaware of the establishment of such massively higher gold (+6.26%) and silver (+7.39%) benchmark prices in Shanghai over Western gold/silver prices, clearly meant to send a message to the rest of the world, then you simply have been subsisting on a concentrated diet of too much MIB carefully controlled Western media financial propaganda and need to diversify your media news diet. Lastly, since I’ve already mentioned that the MIB whipsaws silver prices even more so than in gold, don’t be surprised if the Shanghai silver benchmark premium grows to more than 10% in silver over New York/London in the future.

This article is an abridged version of the full article originally published on the skwealthacademy substack newsletter. To read the full version of this article, including a more detailed discussion of the consequences and fallout of these widening gaps in Shanghai and NY/London gold and silver prices, click here.


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