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<p>[QUOTE="fatima, post: 1448407, member: 22143"]This is an often ignored item in these discussions yet it's the biggest predictor of when these "raids" by naked shorting will take place. I've brought it up before. </p><p><br /></p><p>The central banks will lease out monetary assets such as gold and silver not to make a profit but rather to influence whatever market they are focused on. In the case of gold and silver, the leases are often handled with negative interest rates, as they were late last year and earlier this year, which means the central bank is paying the party for the lease, not making a profit. So the question is why would they lease X amount of gold & silver and the terms of the lease is that the one borrowing, gets to keep a percentage of it? </p><p><br /></p><p>Well first remember the central bank conducts monetary operations to intervene in normal market behavior. It has no interest in making a "profit" at anything. What does profit mean to an organization which can create money out of thin air? So with this in mind, there must be another reason for the leases. The most logical conclusion is these leases are really used to back naked shorting activity with the intent to drive down the prices of silver and gold. The Fed doesn't want people buying gold because it's proof that people are losing confidence in the USD. This is the reason for it. </p><p><br /></p><p>Now in regards to CME raids, all one has to do is to watch the lease rates. When they turn sharply negative, then you can expect a raid. I recommend that you do a search on my topics. I successfully called one earlier in the year which took the steam out silver (where it has remained) which brought up an interesting discussion with those who don't believe this happens yet the proof is right there to be seen. (Or I have a very good crystal ball).</p><p><br /></p><p>One other piece of advice. There is no such thing as a gold & silver ratio as a predictor of price.[/QUOTE]</p><p><br /></p>
[QUOTE="fatima, post: 1448407, member: 22143"]This is an often ignored item in these discussions yet it's the biggest predictor of when these "raids" by naked shorting will take place. I've brought it up before. The central banks will lease out monetary assets such as gold and silver not to make a profit but rather to influence whatever market they are focused on. In the case of gold and silver, the leases are often handled with negative interest rates, as they were late last year and earlier this year, which means the central bank is paying the party for the lease, not making a profit. So the question is why would they lease X amount of gold & silver and the terms of the lease is that the one borrowing, gets to keep a percentage of it? Well first remember the central bank conducts monetary operations to intervene in normal market behavior. It has no interest in making a "profit" at anything. What does profit mean to an organization which can create money out of thin air? So with this in mind, there must be another reason for the leases. The most logical conclusion is these leases are really used to back naked shorting activity with the intent to drive down the prices of silver and gold. The Fed doesn't want people buying gold because it's proof that people are losing confidence in the USD. This is the reason for it. Now in regards to CME raids, all one has to do is to watch the lease rates. When they turn sharply negative, then you can expect a raid. I recommend that you do a search on my topics. I successfully called one earlier in the year which took the steam out silver (where it has remained) which brought up an interesting discussion with those who don't believe this happens yet the proof is right there to be seen. (Or I have a very good crystal ball). One other piece of advice. There is no such thing as a gold & silver ratio as a predictor of price.[/QUOTE]
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