Precious Metals mutual funds (gold, silver, PGMs) Message Board

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Strategies & Market Trends : Precious Metals mutual funds (gold, silver, PGMs)

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To: Wade who wrote (803)	11/20/2003 9:13:54 PM
From: Larry S.	Read Replies (2) of 972

Wade, My short-term memory is good enough to be sure but my impression is that, while lease rate are at the low end of their range (I watch the 1-year rate primarily), their movement is still consistent with leased gold being sold into the market to cap the price. For example, the POG dropped a bit yesterday and the lease rates posted today were up a bit. The day before(or the day before that) the POG was steady most of the day but took a hit mid-day and the rate posted the next morning was up a bit. While the POG was moving up a couple days last week, the rate posted was down the following day. However, you may well have hit the nail on the head with the observation that rates are very low indicating that there isn't much leasing. But it seems to me that low rates mean that the CBs are doing all they can to assure that gold is available for leasing. They can't be looking to make money at a one-year rate of 0.30 percent but they know that, if the price moves up, investors will assume inflation is coming and push rates up thereby slowing economies. As a rank amateur, I find the action fascinating but frightening. Larry

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