The gold interest rate earned on fiat gold is commonly referred as the gold “lease” rate.
It is calculated as:
Gold Lease Rate = Libor Rate - Gold Forward Rate.
The LBMA presents the data every day at this link.
Whenever the gold lease rate tops out (spikes upwards), the gold price will hit a bottom as central banks demand the gold back from the bullion banks at higher gold lease rates. So it is a bullish sign to have high gold lease rates. It means that the GOFO rate is very low, which indicates backwardation in gold.
The interest rate for lending gold in exchange for dollars plunged to the lowest on record this week as European banks sought ways to secure the U.S. currency amid the region’s debt crisis.
BeantwoordenVerwijderenus gold coins
the gold lease charge started to spike upwards, which inevitable gold was in short furnish.
BeantwoordenVerwijdereninvesting in gold
The Lease rate of gold spikes upwards, gold price change.
BeantwoordenVerwijderenbuying gold and silver coins