How appropos. Just yesterday we wrote about the Shanghai exchange, and how we should keep an eye on the difference between prices there vs the world gold price. This difference is called the premium, as in: How much of a premium do I have to pay to buy known-actual gold (instead of paper gold or derivatives)? Then later that same day the premium hit a new high. At one point purchasers on the Shanghai exchange paid about $28 more than the world gold price. Now this may seem almost trivial here in the US, where many shops charge $75 or $100 more for a one ounce coin than the world price, and as much as $200/oz more for small-denomination coins such as quarter- or tenth-ounce.
The important thing to us is this gives us a benchmark to measure the market. Now that the premium bounced off 28, we know that if we see a premium higher than 28 the market is stressed.