Monday 12 December 2011

Negative lease rates 1-6 month

For a couple of weeks or so.

And a couple of nice "credit event" days.

Kitco's lease rates are based off LIBOR.

What do you make of it?


DP said...

So, is Jesse right later today when he posted this chart too - that a shitload of gold was leased at at a loss by someone(s) on the 2nd & 7th? Or is it really the case instead that LIBOR spiked on those days, making the gold lease rates RELATIVELY negative?

The golden beachball getting shoved under water, or cash becoming almost impossible to come by?

Or both, perhaps.

Who knows...

DP said...

May be interesting to come back to Jesse's cafe to see if there is anything useful added

DP said...

John Dizard, who frequently comments on gold in the Financial Times wrote on Saturday that,
“Gold market people say European commercial banks are being driven to lend gold for dollars at negative interest rates just to raise some extra cash for a few weeks. 
There’s not a lot of transparency about where the banks are getting the gold they are lending out, but it could be lent to them by either their national central banks, or by gold exchange traded funds.”

DP said...

"Already some hedge funds managers and investors have liquidated their ETF positions in favour of allocated physical bullion and we would expect that trend to accelerate as prudent investors rightly seek to avoid counter party and systemic risk."

DP said...

ZeroHedge: As Negative Gold Lease Rates Collapse, The Gold Sell Off Is
Likely Coming To An End

If you were ever considering buying some gold, right about now is the time.

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