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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: RJA_ who wrote (12253)	10/2/2008 11:58:59 PM
From: Real Man	Read Replies (2) \| Respond to of 71456

Physical shortage - shortage of metal to lease.

To: RJA_ who wrote (12253)	10/3/2008 12:04:25 AM
From: SARMAN	Read Replies (1) \| Respond to of 71456

If I may, I believe when there is a shortage of physical gold, the lease premium increases. It is also used as an indicator. I recall, Vi predicted the $85 spike in gold, by analyzing gold lease rate.

To: RJA_ who wrote (12253)	10/22/2008 10:48:51 PM
From: SARMAN	Read Replies (1) \| Respond to of 71456

RJA_, I found this link that gives an explanation on how gold lease rate works. Misinterpretation of Gold Lease Rates and Why Gold Could Rise seekingalpha.com

To: RJA_ who wrote (12253)	10/23/2008 8:34:09 AM
From: carranza2	Read Replies (2) \| Respond to of 71456

Higher gold lease rates mean that the gold carry trade is unwinding for the bullion banks. And that means that they'll have less inclination to lease gold. And that means that they'll be returning physical gold to the Fed. And that means that there will be an active attempt to supress gold prices. Why? Because the financial system is stressed. If the bullion banks have to return gold at 'market' prices, they will have a lot of difficulty doing so. And that is very bad, under current conditions. By keeping lease rates high but prices suppressed, it seems that a decision has been made by the Central Banks to 'gather-in' gold, to hoard it. If true, why? Are we going back to a modified gold standard? Could it be that economists and The Wise have finally figured out, after repeated historical examples, that fiat currencies simply do not work? Could be, there is about a 2% chance of that happening, IMO. If true, what happens to the common, average public holders like us, who hold relatively tiny amounts? Two things: We get royally shafted or we profit tremendously.