My bet is that the CBs are going to curtail lending because they are at the bottom of the barrel for new lending supplies. If that's the case, you can take this to the bank - with no new leasing supplies, it is game over. That the leasing con may be ending here should not be a surprise, the real surprise is how it's lasted as long as it has. Let's take a minute and view the current landscape after the opening volley of the post-lease environment. In gold, we have endless rumors of hedge funds and other shorts in extreme difficulty.
Trading is more chaotic and disorderly in gold than at any other time in history.
The rapidity of the increase in gold in the days since the announcement has left the natural short sellers in the mining and professional investment community dazed and wounded - some surely mortally. That phenomenon is the collective mourning and sadness in the mining community over the price rise. Maybe the non-hedgers are jumping for joy, but there is no joy in the short selling miner world. It should show you that leasing is rotten to the core. But I'm not writing this piece to recap the past week's events.