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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: John Hunt who wrote (26938)	1/24/1999 2:45:00 PM
From: John Hunt	Read Replies (1) \| Respond to of 116764

Gold Leasing - Conspiracy Or Economic Reality ? << The leasing of gold is simply gold being used as money. Like all money, there is a large above ground stock of gold that increases over time (although the rate of increase in the quantity of gold is generally much lower and more stable than the rate of increase in the quantity of fiat currency). This means that the current year's supply of gold is far less important to the gold price than the supply that can potentially come from the existing above ground stock. As such, gold leasing cannot be likened to the leasing of apartments or cars (when you lease an apartment you cannot return a different apartment at the end of the lease). It also cannot be likened to the leasing of soybeans or oil or any other commodity (other commodities are consumed, whereas all mined gold remains in existence and is therefore a potential source of supply). It can be likened, however, to the lending/borrowing of Dollars, Yen, Deutschemarks and Euros. In fact, the mere use of the word 'lease' conveys the wrong impression when we are discussing the gold market. Therefore, for the remainder of this article let's dispense with this word and use terms that correctly reflect gold's use as a form of money. -- cont'd -- >> gold-eagle.com