Maguire: An increasing number of producers are being approached by China to buy their forward production, and at a premium over spot.
And I have reliable information from one of the producers I deal with that they are getting a forward sale price equivalent to just a small discount over the strong Shanghai closing wholesale premiums. They (those premiums in Shanghai) average around $15 per ounce, but have been as high as $30 per ounce.
Even today’s premium of $17 is a substantial premium over the dilutive London spot price. And it’s undermining the LBMA’s efforts to steal forward production at a discount.