Kitco Shows Recent Plunge to Negative In Gold Lease Rates

Here is what they are showing.

I am wondering if Kitco did not use a bad LIBOR quote in calculating this.

As you may recall the lease rate calculation is LIBOR - GOFO (Gold Forward Offered Rates) = Lease Rate.

A drop in lease rates like this might presage a sell off attempt in gold, or an influx of leased gold to meet some short term delivery pressures or demands for allocation from unallocated sources.

Here is something I wrote about this in the past, when lease rates had dropped.

I suspect Kitco may have miscalculated the data by using a bad LIBOR number, but lets see what happens tomorrow, and I'll do the math myself if they do not correct this.

PS. Later, a reader informs me that he thinks they did miscalculate.  I will give it a day.

When I Despair...

When I despair, I remember that all through history the ways of truth and love have always won. There have been tyrants, and murderers, and for a time they can seem invincible, but in the end they always fall. Think of it. Always.

Mahatma Gandhi

And remember, no matter how bleak things may appear, the Dude abides.

Like the rug, he really does tie the room together.

Bill Moyers: The Senate's $500 Million BiPartisan Corporate Welfare Gift to Amgen

Mitch McConnell Republican from Kentucky, Max Baucus Democrat from Montana, and Orrin Hatch Republican of Utah.

"...we have now sunk to a depth at which the restatement of the obvious is the first duty of intelligent men. It is not merely that at present the rule of naked force obtains almost everywhere. Probably that has always been the case.

Where this age differs from those immediately preceding it is that a liberal intelligentsia is lacking. Bully-worship, under various disguises, has become a universal religion..."

George Orwell, Review of Bertrand Russell's Power: a New Social Analysis in Adelphi Magazine, January 1939