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<p>[QUOTE=&quot;fatima, post: 1449251, member: 22143&quot;]OK so we have established that you know nothing about gold or silver leasing by the central banks.&nbsp; It would have been nice if you had read what I posted above.&nbsp; Never the less,&nbsp; I will attempt to educate you by answering your questions:</p><p><br /></p><ul> <li><span style="color: red">First, I would like to see proof of it.</span>Assuming you mean does gold leasing you only need to look at Kitco which not only provides the daily &amp; historic lease rates, but also a definition <a href="http://www.kitco.com/glossary/lease_rates.html" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.kitco.com/glossary/lease_rates.html" rel="nofollow">http://www.kitco.com/glossary/lease_rates.html</a> It is as I said, they lease is in ounces of gold, not currency amounts. </li> <li><span style="color: red">Second, its an asset just sitting there doing nothing.</span>I&#039;m not sure there is a question here, but assuming that you believe it makes no sense for banks to hold gold as assets, I will point out the Federal Reserve has over 7000 tons of it in its Manhattan vault, more tons of it in the other FR vaults (there are published rules for accounting), and finally it&#039;s Gold Certificate Account that it holds for the US Treasury&#039;s gold which is another 7000 tons.&nbsp;&nbsp; This is a lot of gold sitting there which you claim is doing nothing.&nbsp; Yet, there it is and they spend vast amounts to protect it as well.&nbsp; </li> <li><span style="color: red">If I was holding an asset generating me no returns, I would be open to leasing it out to others IF I could ensure I got it back</span>This ignores the subject that we are discussing.&nbsp; The lease rates are sent NEGATIVE.&nbsp;&nbsp; This means you not only fail to get any sort of return, you actually lose your gold.&nbsp; In other words, your logic fails because you assume that someone holding gold must be making a return on it and you are refusing to consider other reasons.&nbsp;&nbsp; This is the <a href="http://www.youtube.com/watch?v=6Xywqv1cDH8" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.youtube.com/watch?v=6Xywqv1cDH8" rel="nofollow">Chewbacca defense</a>.&nbsp;&nbsp; Furthermore the Federal Reserve specifically states that one of the purposes for holding gold is to use it in the Exchange Stability Fund.&nbsp; </li> <li><span style="color: red">As for payment, they are custodians of PM, why not get paid in PM and keep it easy accounting?</span>I bring it up because your first attempt to dispute that gold leasing exists was an argument based on money which means you had incorrectly assumed this was how it was handled.&nbsp;&nbsp; </li> <li><span style="color: red">This is a way their stockpile can physically grow, not a bad thing.</span>You incorrectly assume that physical gold is moved and that the entities buying the leases are actually &quot;customers&quot; seeking to own physical gold.&nbsp; The only way a &quot;stockpile&quot; grows is if they screw it up and they have to actually supply gold to cover the short.&nbsp; I already spoke of this above so go back and re-read it.&nbsp; It&#039;s definitely something they don&#039;t want. </li> </ul><p>[/QUOTE]</p><p><br /></p>

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