SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Gold Price Monitor
GDXJ 108.29-0.9%Dec 1 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Enigma who wrote (47113)1/15/2000 12:24:00 PM
From: Ken Benes  Read Replies (1) of 116790
 
The leased gold is in addition to gold produced. One has nothing to do with the other. Production is what it is. This is similar to all other commodities. What is unique for gold, the above ground stores of cb gold is available for either sale or lease. When leased, the gold remains on the balance sheet of the cb as a receiveable and is then sold into the market as an additional amount of supply to what is sold by the producers. One does not replace the other.
The leasing program is a costly accounting gimmick for the cb's. They lease gold to an intermediary who then sells it in the market keeps the proceeds and invests the monies into treasuries, etc. The cb gets a small fee of .5 to 1% for the leased gold. The seller keeps the proceeds and makes both a contango on the difference between the lease fee and what he gets in interest. In addition, he can use the treasuries he acquired from the sale of the leased gold for collateral in making additional loans or purchasing equities on margin. D, this is probably getting way to complicated for your aging myopic mind. I know your are happy with your interruptation of a market that is infinitely more complicated than the capacity of mining has been to understand.

Ken
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News