Monday, 28 January 2013

Gold lease rates suddenly go negative.................from Rico

Gold lease rates have plunged sharply and gone negative.
- Why?

One 'application' of negative lease rates is to borrow Gold to raid the market spot Gold price.
- The bankers then buy the Gold back at a lower rate once the Muppets have been scared off, thus making money from prop desk trading.
- At the same time, money is made off the interest that is paid to borrow the Gold.
= A win-win for the bankers, heads they win and tails you lose.

On the other hand:
- Is this a signal of the imminent default of a EUro member (like Greece)?
- Or, is this a signal of the imminent default of a major exchange such as the LBMA or COMEX?

I guess we'll soon see.................

1 comment:

Albert Sung said...

Or is this just a glitch?