That is why the lease rates have risen so much. Since May and the Bank of England gold sale announcement, the one-month gold lease rate rose from 1 percent to more than 5 percent at one point. Repeatedly you have received information from our sources that the gold borrowings are much, much bigger than the mainstream analysts know. Again, we have been alerted that just four hedge funds have borrowed 30-50 million ounces of gold. The lease rates have come off a bit on this rally, as the one-month rate is 3.36 percent, but that is still more than three times normal.
Producers sell scale up normally.
If that were the case at the present, lease rates should not be coming down. But if hedge funds or spec borrowers were turning in some gold to exit some gold loans, it could account for the modest reduction in the lease rates. That fits perfectly into our scenario and is consistent with all we have telling you. Now for the scoop of the day. There has been much conjecture of late as to whether the Swiss can sell some of their gold.