More on the gold lease rates, don't think this has been posted:http://www.gata.org/node/6188
"In the past few days a strange thing has happened. Australia's The Privateer says, "the shorter term (one and two-month) rates have actually gone into negative territory this week."
In other words, gold is being supplied to the market by the central banks. The Privateer goes on: "We do not recall a previous instance of this, and there certainly has not been one since the cold bull market began in 2001-02. ...
"We have not -- until now -- seen a situation in which the central banks are actually paying the bullion banks, hedge funds, gold miners, et al. to borrow the stuff. And please don't forget that, in this context, leasing gold is actually 'shorting' gold. Gold is not 'leased' to be hoarded; it is 'leased' to be sold for something that pays a far higher rate of interest. ... The practice of 'leasing gold -- and silver' by the central banks has been one of their best means of suppressing the prices of these precious metals for a long time."
Interestingly The Privateer's wonderful $US 5x3 Point and figure chart withstood this week's slump. See chart:http://www.the-privateer.com/chart/gold-pf.html
Goldbug conclusion: Central banks, led surreptitiously by the Fed, are supplying physical gold to the market. And wise heads like the Indians are buying it."
Question is though - what is being bought?