allow me to comment...the lease rates spiked even higher today, to 5,40%.
the Indian earth quake story is getting real old. assuming that gold demand in India falls by say 100 tons, well, that will reduce the supply/demand deficit from between 1,500-2,000 tons to 1,400 - 1,900 tons. BIG DEAL! -g-
the assertion that spiking lease rates have anything to do with Australian producer forward selling is a typical propaganda BS story too. sure, rates go up on a supply increase, LOL! the Oz producers are collectively short over 2000 tons by now. some have sold forward more gold than they have in proven reserves. ONE is already close to bankruptcy due to its under-water hedge book. sure, those dudes are increasing their forwards now, LOL!...in reality, they are TERRIFIED that a rally might eventuate...it would sink most of them due to their absolutely whacky hedge books.
as to official silver sales, no more such sales are possible courtesy of the US government. its silver stockpile has dwindled to zero. zilch. nada. the US mint, if it wants to continue minting silver coins, is from now on forced to BUY silver in the open market. China's silver hoard is , well, a myth. no official data are available at all. i.e. no-one knows, if, and how much silver they have. OFFICIALLY the world's above ground stocks are 300m. oz.
however, no-one seems able to PROVE that more than 150m. oz. in inventories do in fact exist. it's a guessing game reported as fact. try to buy a silver contract on the Comex and insist on delivery - you'll wait forever. imo, the reported deliveries are a shuffling back and forth of the same silver between the same parties, to keep up appearances.
we'll know soon enough - if one day we begin to get what's termed 'disorderly market conditions', i.e. a series of limit up moves without let-up and the major players all declaring 'force majeure' and refusing to deliver, the jig will finally be up. could happen anytime imo...at the very latest, it will happen when the last oz. of above ground stocks has been consumed. the silver borrowers and shorts will then have to hope for house-wives selling their silverware...which the will, once the price is high enough that is! |
