($GLD, $USD) It is cheaper to borrow gold than dollars (the gold lease rate is in essence the cost of shorting gold. The FT reports that the 1-month lease rate fell to a record of almost -0.5%). This does not seem to be a reflection of the intrinsic value of either one, but rather another expression of the stress of the banking system and the pressure to secure dollar funding.-M.Chandler
No comments:
Post a Comment