Gold Price My pick for end of week, page-9

Chuck it wouldnt surprise me to see lease rates stay very low for some time yet, and we may not see lease rates go higher while we are in the bull mode.

My reasons for this is as i understand the process of shorting gold by the contangos and market professionals is that lease rates are a part of the forward selling or shorting of physical gold.

At this present time gold companies are cutting back their forward selling and market pro's are too scared to short gold on a large scale and for any lenght of time. If they do short gold it is only for a short period of time due to the solid support gold has in the physical market. All dips in gold are being bought by funds, investors and comercial users.

Therefore the shorts are not leaving their positions open long enough for them to actually produce the gold they have sold. Basically just scalping the tops of each rise in gold.

The lease market players or those that will provide the gold at a lease rate are offering the gold at a low rate to try and attract short players into the market.

Why their is little demand for leased gold by the shorts the rates will stay low and attractive for the unsuspecting trader to make a mistake. Low demand low costs.

Anyway thats just my thoughts and take on why lease rates have stayed low.

cheers chooch...
im bullish gold and we will see a hefty rise in gold once the US dollar short squeeze is finished tonight or tommorrow night.

Gold friday $312 plus...