tinecu

Beautiful stuff. My gran used to quote that to me, bless her soul. "Never a borrower or lender be" Wise words.

Deflation anyone? But seriously this looking very like the 1970's picture to me....

I'm getting the impression that '-ve lease rates' be they real or implied are rather bullish for gold...IMO it means there is very little demand to short gold. Suggesting a widespread belief that gold will rise from here? edit:spelling

Ooops forgot link: http://www.aci.net/kalliste/Gold3.htm

this is worth a read. Note. The 'Cash and Carry trade' and the final example cited of a central bank in need of liquidity at the bottom of the page.

I wonder if they both hold Gold shorts by any chance?

CGNAO's take in the lease rate move... "Central banks dumping gold like it's going out of fashion. They desperately want to hold it back, but they can't. " http://www.housepricecrash.co.uk/forum/ind...046&st=2175

Hmm so lots of borrowing of gold took place over the last two months....probably to sell high and buy back low as everyone and their dog expected a correction post $1000. So now they want to give it back....but the banks aren't keen as this means handing out their precious liquid funds in a credit squeeze. So this could go several ways...here's two...maybe 1)Gold borrowers decide to enjoy being paid to keep it (like fiat)..gold price goes up? 2)Investors don't want the risk of further falls and force the banks to take it back...banks have to borrow or sell their remaining gold or other assets to cover the USDs needed to repay the loan. The outcome of this depends on how much the gold the gold lenders have left in their vaults. Re point 1...if investors can get Libor + the lease rate return on their money in a 'safe haven' won't they rush to it and create a shortage of supply in Gold? Or is this too optimistic?

Silver looked cheap to me at $17.7...so I bought.

Great post. Methanol and hydrogen fuel cells also use platinum.

Well put. They'll all get it eventually.

Is it me or did someone just turn the Yen carry trade on full monty today? Is that the G7 plan to avoid catastrophy? Oh dear... Short term= recovery long term = inflationary collapse

Yeah the guy seem rather optimistic!

Gold is gaining against all fiat tonight even the JPY!

Now it must be big if we are quoting Churchill

but Pt and Pd are heading down

£500+ on BV

Yup, but first 16K/kg GBP=toast

1) Loads 2)Yes (and this will increase in the mania phase) Hence the chance of a sharp correction...but after the shake-out Gold will rise again IMO

I like the 1kg 'coins' ...saves hours of counting The Times says 'Hoard Gold' today!! The masses are wising up at last. Return to the 1970s: how to reap a profit in the downturn With the rocketing price of oil, gold and many other commodities reminding investors of the turmoil that Britain faced 35 years ago, we asked the professionals to outline the best ways to profit from the current chaos raging in the world’s markets http://business.timesonline.co.uk/tol/busi...icle3558728.ece

They gave me good and quick service.

Nor in Pounds or far from it in terms of CHF

Plenty of 'shock awe' today in the UK. $1000 Gold all over BBC Radio4 and in Parliament (the 'Brown bottom' :-))! So the word is out....the 'anti-dollar' is on the march.

The cartel must run out of ammo soon in this dog-fight for the big $1000....we shall see

Indeed the term gold is very general... Gold price is a better search term: Try http://www.google.com/trends?q=buying+gold...=all&sort=0 note "buying gold" is not surging.