I have become very bullish lately on silver and was already bullish on gold. But the following chart makes me ultimately bullish. We see the biggest increase in gold lease rates as of yesterday and we have seen this before. In 2008, the gold lease rates started to spike upwards, which meant gold was in short supply. It also meant that the "interest" to hold gold was going up, just like the "interest" on your cash is going up. This ultimately means that the world is valuing gold at a higher interest rate and the central banks are demanding their gold back from the bullion banks. We are in for a huge upside move if you ask me.
Hi Albert, Thanks for you blog and keep up the great work. I don't understand where they get their data. When I look at the data here, the foreign holdings are flat to up.
ReplyDeletehttp://ticdata.treasury.gov/Publish/mfh.txt
We have 6 trillion of total foreign holders, but 4 trillion of that is official and that has been going down.
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