Who knows what Coldplay are really singing about, but these selected lyrics from their song Violet Hill seem relevant to our current situation:
When the future's architectured
By a carnival of idiots on show
You'd better lie low
Was a long and dark December
When the banks became cathedrals
And the fog became God
I don't want to be a soldier
Who the captain of some sinking ship
Would stow, far below
Bron, as a favour please could you check this article and comment?ReplyDelete
Brad's main point is that because of a drop in the working inventories of jewellery manufacturers due to less people buying jewellery (recession + high gold price), there is less need to borrow gold.ReplyDelete
Certainly one source of borrowing demand for gold is manufacturers, but there is also short sellers. I am not so sure that the manufacturing demand (or amount of gold they hold in inventory) is the main driver of the lease market. I would suggest that hedging by miners, even though it is out of favor, would also be a significant source of demand for leasing gold.
Hard to know the real supply/demand balance in the lease market, as gold is not a nice, exchange traded, transparent market.
When the future's architechured by a Carnival of idiots on show, you better lie low....ReplyDelete
or Karn Evil of idiots 'come and see the show' and they are lying low now...