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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Crimson Ghost who wrote (113279)7/18/2001 4:22:57 PM
From: pater tenebrarum  Read Replies (1) of 436258
 
i'm not so sure about that. unfortunately the gold lending market is notoriously non-transparent, so there's rarely a clear cut answer as to why the things that are happening in it do transpire. but, it is quite possible that the decline in lease rates is a result of falling demand for gold loans. that would NOT be bearish, since forward selling is a major factor in depressing the price. a study of lease rates over the longer term also shows that they generally do not stay high during trending markets, i.e. neither during extended rallies nor during extended bear phases. but they tend to spike near turning points. the spike that marked the low of the bear market occurred in '99.
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