Fearless

Happy Thurs. I'm not an expert on borrowing metals but I do know something about banking & borrowing securities & IMO they have the same mechanics. I wud suggest to you that the current lower cost of borrowing gold is a function of lower interest rates, more competition & the fact secondary credits are not bankable. If I'm a broker or a bank & I sell gold or stocks short in the cash mkt. I receive cash in return. But I have to give that cash to the person (central bank, ETF, or whoever) who lent me the securities or gold as well as margin. Now the lender can buy short term securities with the cash & in effect receive a positive return on his gold. An efficient brokerage always lends out as many securities as possible by using the securities held in margin a/c's because he can receive cash & pay down loans & improve profits. You could also argue the reason borrowing rates for gold have come down is because there are very few borrowers who are prepared to short gold & there are many new sources to borrow said gold. A normal lack of demand & abundance of supply.

Gold is over $900. & the chart has sloped upwards for years. No indication of a short attack. It's almost scary that you can't find anyone who thinks the price is going down & i'm including central banks.

Regards

Joltin