gold lease rates going through the roof???

Discussion in 'Economics' started by shahdad, Oct 8, 2008.

  1. shahdad


    Could somone please provide some insight as to why this is happening and how it effefcts the gold prices in the short and/or long term?

  2. pitz


    Bullion lenders are increasingly worried about not getting their gold back = high lease rates.
  3. counter party risk.

    who wants to lend gold at LIBOR + 2 if you can't get it back

    screw that.
  4. The Central Banks are no longer interested in leasing out gold. In addition, they are no longer willing to roll old leases.

    The gold to replace it will have to come from someplace... I wonder how much we are talking about?
  5. pitz


    Can you say, "mother of all short squeezes"?