Gold Price Monitor Message Board

STOCKTALK

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 90.35

+0.4%

Nov 6 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Square_Dealings who wrote (64183)	2/22/2001 8:24:24 AM
From: russwinter	Read Replies (2) of 116752

Lease rates up Gold lease rates have really shot up. This is bad for the carry trade and the producer hedging contango as the cost of borrowing has increased (in US Dollar terms forwards are at a mere 3.70% on one year, and 3.83% on three years, hardly worth the bother). The other side of the trade: likely to be six month T- bills to five year treasury notes, haven't traded all that well either. kitco.com There are a few theories about these lease rates. Many are suggesting that a substantial sale (of gold that had been leased, so it eliminates liquidity)from a non-WAG central bank has hit the market. That has happened before, but I believe there is another explaination. Could it be that a CB or two have rerated the credit quality of this lending strategy, and are demanding a higher return to compensate? Or, has a CB withdrawn from the practice? Either would be a major bullish development for POG.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next