Today there have been four distinctly and differently priced markets established for gold: (1) Futures markets in Asia that consistently establish prices $20 an ounce to $60 an ounce higher than the prices established in (2) Futures markets in New York; (3) Physical bullion bars which dealers are starting to price at healthy premiums above both daily spot prices established in Asia and London/New York; and (4) Physical coins which dealers have always priced at premiums above bars and spot prices, but that are now selling at soaring premiums above spot prices.
Since the July 14th correction in gold and silver markets began, waterfall declines have occurred in gold prices in New York futures markets that trade paper gold where physical delivery of real gold occurs with less than 1% of all paper traded futures contracts. The differences in spot prices in Asian futures markets and in New York futures markets for gold have been staggering for the past 10-12 weeks, so much so that two distinct and separate future markets for gold have been established, one in which the gold price is significantly higher in Asia and another, where the gold price is significantly lower in New York. As they say, a picture can paint a thousand words so below you can find the daily spot charts in Asia and in London/New York so you can compare the huge discrepancies between these markets on a visual basis.
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