London gold is too tight for traders to risk arbitrage, Maguire tells KWN


1:23p ET Friday, May 1, 2015

Dear Friend of GATA and Gold:

London's gold market is heavily in backwardation, offering lucrative arbitrage opportunities that traders won't take because they fear that they won't be able to recover metal they sell short, London metals trader Andrew Maguire tells King World News today.

"This week the so-called 'risk-free' profit has been as high as $1.50 per ounce and has been averaging close to $1 per ounce," Maguire says. "I can sell 100,000 ounces right now and I get back my 100,000 ounces in just 30 days, and I scoop a so-called 'risk-free' profit of somewhere around $100,000 or $150,000. Why are the arbitragers not all over this trade to the point they equalize the price? That is how healthy markets work.

"It is because insiders are well-connected enough to the physical market to know that the recent price drop is a synthetic sham and that the real physical markets are extremely tight. They don't want to risk not receiving their bullion back in 30 days."

Maguire's interview is excerpted at the KWN blog here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


Direct Ownership and Storage of Precious Metals
Outside the Banking System in Zurich and Singapore is a precious metals investment company that enables investors to own and store gold directly in their own name (no mutualized ownership) in Zurich and Singapore.

Goldbroker's clients are not exposed to any counterparty risks. They own gold and silver in their own names (the ownership certificate cites the name of the investor and serial number of his bars) and they have storage accounts opened in their own name as well. So's storage partner knows the exact identity of each investor. doesn't store in the name of its clients; rather, Goldbroker's clients store personally. All investors have direct access to their gold and silver bars. was launched in 2011 so that investors would avoid any counterparty risk when investing in physical gold and silver. is listed among GATA's recommended monetary metals dealers. (

To invest or learn more, please visit:

Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference:

Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

Or by purchasing a colorful GATA T-shirt:

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit: