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Politics : Dutch Central Bank Sale Announcement Imminent?
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To: Tom Byron who wrote (10565)2/28/2001 3:53:14 AM
From: sea_urchin  Read Replies (1) of 81034
 
Guree: <what do you make of all this gold lease rates stuff>

Leasing means one wants the use of something without owning it. In this instance, one presumes leasing is for the purpose of short-selling with the intention of repurchase at a lower price.

The long-term chart, at the bottom of the page, shows big leasing activity at end 1995 (which was at the end of the previous "squashed" bull market, right through 1997 which coincides with the major price fall in the bear market, and Oct 1999 which was the previous time POG went down to $255).

From this one deduces that short-selling must have been a major reason for falls in the price of gold. Otherwise why would there have been such intense leasing activity at times when the price fell sharply. (although not in 1995)

I note that the present increase in leasing is small in comparison to what was seen in years gone by.

All very interesting. Thanks
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