As I predicted here, it was time to buy gold and silver. And now it's completely obvious that they will do good as lease rates are steadily increasing. I doubled my position in silver.
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| Chart 1: Gold Lease Rates |
I wish I could show the silver lease rates, but Kitco is cheating on us, their chart only shows a flat line...
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| Chart 2: Silver Lease Rates (flat lines since 2 November 2012) |
Note that from mid aug to oct lease rates dropped and gold rose. Why do you think this is reliably predictive?
BeantwoordenVerwijderenNote that there is a delay between lease rate and gold price. So you just follow the lease rate and then you will know that the gold price will follow a few months later. That's the key. You can predict it.
VerwijderenLease rates go up, bullion banks need to buy back the gold and give it to central banks. There is a delay, that delay is the rise in price of gold a few months later.
The same in the other way, lease rates go down, there is more manipulation from the bullion banks to sell the gold into the market. With a delay you will see prices plunge.
VerwijderenOf course you need to see the big picture too. Lease rates are only 1 indicator, other indicators are:
VerwijderenGolden cross technical
Debt
Global balance sheet expansion
overpriced bonds and stocks
end of operation twist
consolidation in gold market
CME physical silver dropping
mining supply to contract 2%
demand to rise in 2014
capacity utilization of mining going to 90%
silver deficit in 2013
Soros, David Morgan, Paulson buying gold
China buying record amounts of gold
Chinese new year starting soon
and many other things I forget to mention.
(gold price not having kept up with inflation production costs of mining)
Verwijderengold/silver ratio about to break down from 50 to 16.
VerwijderenGood points. On the silver chart the brown 6 month lease has a strange property (dip and now flatlined). Is this an error or is does it have a specific meaning?
BeantwoordenVerwijderenI think it's just a glitch.
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