It may also be the case that the new Bush Administration is quietly letting the cabal know that they will not play ball with the colluders and want the fraud to end. It is starting to go off the charts. Here is a good one. This kind of a comment is very important to put into perspective during these trying precious metal investment times. Your focus on lease rates today was most thought provocative.
Gene is right.
If the lease rates continue to trend up, while the Treasury rates trend down, the gold carry trade will be a complete disaster for all parties. A perusal of the Indian press this morning indicates that while Ahmedabad banking and bullion dealing is still paralyzed to a considerable extent, at least one wholesale import bank has announced recommencing business there, and the city of Jaipur is eagerly anticipating holding on to large gold trade volume gains because of lower taxes. Clearly the public is an active buyer of gold at these prices, otherwise premiums would not have risen. Substitute arrangements will no doubt be developed in a little while so that premiums will become more normal. It is possible that there will be some pent up demand effect when this happens.