Investors,

not much has been mentioned about the importance of the negative 1 month lease rate for gold that has persistantly stayed negative for days now.

First of all a negative lease rate is totally rediculous from a financial standpoint because it means that the central banks are actually paying investors to lease gold from them.

The rational for the central banks leasing gold in the first place was so that they could make some type of interest on what they claimed was an otherwise non interest bearing investment.

The real reason for the central banks wanting to lease gold is so that they could further golds demonitization and fool the public into allowing them to sell the nations gold.

A gold lease in fact is nothing but a short on the price of gold. No one leases gold except for the sole purpose of selling it on the spot market. They then hope to rebuy it at a much lower price thus making profit on the difference in price sold and price rebought in order to return it to the central bank at the end of their lease period. Thus it acts exactly like a short in the stock market.

Thus since the central banks now have a negative lease rate on the 1 month contract. It means that they are actually paying people to short gold. This then goes against there stated rational for leasing gold in the first plase which was to make interest on an otherwise non interest bearing asset.

This just goes to show you how desperate they are now and to what lengths they will go to in order to try and control the rise of the gold price. The FED must lease gold instead of selling it directly onto the spot market because the US has a law that directly forbids the selling off of any of its gold reserve.

Thus leasing of gold is how the FED which is just a group of private banks have gotten around that law and been able to sell the nations gold. The amount of gold leases that the bullion banks have are so underwater and so large that they cannot be conceivable returned in the form of bullion as is stipulated in the lease. Since these same bullion banks that have been shorting gold are the same ones who comprise the FED such as the likes of JP Morgan. When the bullion suppresion game is up they no doubt will be allowed to return the value of their short position in the form of worthless paper currency. This will be no problem since JP Morgan is the FED for all intensive purposes and can print as much Faux currency as they like hahahaha.

Lease rates over the past ten years have, on balance, fallen to less than a tenth of the rates prevailing ten years ago from around 2% to less than .2%

The falling rates suggest there is less demand for leased gold in a rising gold market. That is a very rational thing to do considering a lease on gold is actually a short on gold.

The other thing this could mean, however, is that the official sector (central banks) are arbitrarily lowering rates to inject more official gold surreptitiously into the gold market. The low overall rates imply that the official sector is hemorrhaging gold but that this situation cannot continue for too much longer. This in fact is with all probability the actual reason because A.Greenspan is on record as stating that the central banks are prepared to sell ever increasing amounts of bullion on the market in order to control it's price rise.

How much actual bullion the central banks in the west have is a closely guarded secret. Through methods such as leasing, lending and swapping between banks where every bank claims possession of the bullion. The actual bullion is double counted or even more as being actually in the vaults which of course it is not. This is of course legalized fraud.

There has not been an official accounting of the US gold holdings since the 50's. Resently the gold has been reclassified from storage to deep storage. I wonder why, probably because it still is in the form of ore in the ground somewhere hahahahaha.

With regards to golds poor cousin silver and the heavy manipulation that goes on in that market here is an example of the extremes the manipulators will go to.

During the Buffett Spike of 1997-98, one year lease rates reached 76%.In a similar pattern to gold, silver lease rates are also declining as is the volatility. To give you some idea of the extremes that the monetary authorities will risk to control the price of silver (suppress a rise in price) during the Buffett spike, the spot price of silver rose from $5 to $7.50 while the lease rates rose from about 1% to 76%. Since lease rates are annualized, that means people were borrowing silver and paying over 6% per month metal interest to meet delivery commitments to Buffett rather than buying on the spot market. In this way, demand was displaced from spot markets into the lease markets where it was far less visible. The price of silver rose 50% over the span of a few months, while lease rates rose 7000% behind closed doors.

In this way, the general public was kept unaware of any excitement in the silver market, and most of the profit ended up in the pockets of the bullion banks.

The manipulation continues but the cartel are getting ever more desperate and investors are getting more and more aware of what the end game is all about.

Regards,

F.F.