A very good explanation of central bank gold leasing, with some good charts. I can't say I really understand the mechanism, but it seems to back up my theory that they were using it to manipulate the price.
money (pun intended) quote:
"To conclude, this final graph signals incredible stress in the financial sector in its efforts to control gold prices. The low overall rates imply that the official sector is hemorrhaging gold but that this situation cannot continue for too much longer. In short, this final graph signals the death of leasing just a surely as an EKG like this would signal the death of a critically ill patient."
"To conclude, this final graph signals incredible stress in the financial sector in its efforts to control gold prices. The low overall rates imply that the official sector is hemorrhaging gold but that this situation cannot continue for too much longer. In short, this final graph signals the death of leasing just a surely as an EKG like this would signal the death of a critically ill patient."
Note that this is from about two years ago. It would be nice to see a more recent chart, but I suspect that it's still pretty much flat-lined due to the sky-rocketing gold price. So even though it's at historic highs ($927/oz) today, I'm very tempted to cash out my lame money-market IRA, (my last interest rate was 1.2%) buy coins and bury 'em in the garden, especially since they just dropped the interest rate 50 points and the dow went up about 30. Storms a' comin', pa.
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