Re: Negative Lease Rates

Aurelian Resources Was Stolen By Kinross and Management But Will Not Be Forgotten

The company whose shareholders were better than its management

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Joltin

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Re: Negative Lease Rates

in response to

Re: Negative Lease Rates

BritNick

posted on Apr 03, 2008 03:32PM

Britnick

Welcome back. The 1st thing I notice the article is more than 2 years old. I had a quick read & I didn't see any mention of putting up cash as collateral when you borrow gold. Did I miss something? I thought he said, or insinuated, you just sign a "lease certificate" & they give you gold. If so that is ridiculous! If the price of gold is $850. you put up $850,000. per million + some margin. If the price goes to $950. you must put up an additional $100,000. There may be sweetheart deals & you can put up US T-Bills instead. But whoever lends out the gold can never be at risk based on a lease certificate. Do you think there is anything in the article that should change my opinion?