Today’s chart of the day examines gold premiums in China in the wake of the April smash. In late April when Jim Willie stated that physical gold was trading at a massive premium in Asia, many readers scoffed. As the Bloomberg chart below demonstrates, physical gold premiums did indeed skyrocket in the wake of the cartel’s epic paper takedown, with premiums jumping from $7 to $120/oz!
“Premium is a function of demand and supply, and right now you could interpret the high premium in Shanghai as a sweetener to entice the overseas gold supply to flow into China.” -Bank of China’s Qu
Source: Bloomberg Chart of the Day