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Gold/Mining/Energy : Gold & Gold Stock Analysis
GLD 395.880.0%4:00 PM EST
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To: Nevada9999 who wrote (15440)10/7/2008 8:41:06 PM
From: ogi  Read Replies (3) of 29622
 
I take the increased lease rates to mean holders of gold, ie Central Banks primarily are no longer willing to lend it for nothing. So others can no longer borrow gold for under 1% and then sell it into the market and invest in another instrument at far higher rates of return. All the while the leased gold having been sold remained on the books of the bank that loaned it. Up until recently the borrower was confident they could replace what they borrowed, today I doubt they feel they can without risking huge losses.

Cheers,
Ogi
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