4 ms·

Yes, you're paying arbitrage instead of shipping fees. Which is not unreasonable for commodity markets with different settlement locations.

• IshKebab 7mo ago
  Yeah and in theory they should be equal.
  • JumpCrisscross 7mo ago
    > in theory they should be equal Related. Not equal.
    • IshKebab 7mo ago
      No, equal. If the profit gained from buying/selling gold in New York and doing the opposite in London is not equal to the cost of physically transporting the gold across the Atlantic then there is and arbitrage opportunity and in a perfect market it would be eliminated until those costs are exactly equal. In reality markets aren't perfect, and also you'd have to take into account the benefit that doing things digitally is much faster, so it won't actually be equal. But in the magic world that economists live in it should be.
  • __turbobrew__ 7mo ago
    I can see that gold settled in London is worth more than gold settled in NYC given trust in both nations right now.