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<p>[QUOTE=&quot;desertgem, post: 1453041, member: 15199&quot;]I do not think that anyone even remotely attached to this forum could negotiate a gold lease arrangement with a central bank of any country,&nbsp; I seriously doubt that Greece central banks among others could. Yes, JPMorgan could, the CME group could, other specific Financial institutions and&nbsp; certain foreign central banks could, but one can not think of this as &quot;Joe Public Bullion company&quot; with his millions/billions, even leasing gold from a central bank. </p><p><br /></p><p>If an individual had 1000 ounces of gold ( scale this to what ever level you wish) and wanted to do a DIY &quot;gold leasing type of scheme&quot; to obtain cash to loan out to a developer who can&#039;t get it any other source, but is trusted by you ( biggest factor in your project or in a central bank&#039;s lease), you could do this.</p><p><br /></p><p>Sell the gold for cash. Buy a future contract or appropriate options that will allow conversion and thus delivery at a period before expiration of when the loan is due. Using margins until the conversion date, The remainder of the cash for sale of your gold would be the loan amount to your developer friend ( who you trust with your future , or who has transferred other equitable holdings to you, like rare art he doesn&#039;t want to really sell). To be profitable, the rate of your loan should be sufficient for your risk.&nbsp; The future contracts will negate most of your risk, you don&#039;t have to worry about storing/protecting your gold for the period, and you can make some money with the interest rate. Done right, you should only lose if the world goes to pot and you need your physical gold ( but Central Banks don&#039;t worry much about this), otherwise, when he pays the loan, convert your margin future to a delivery future, and pay the difference. If you figured right, you get your gold back and made some money.</p><p><br /></p><p>BUT THEN, you realize oh my, I have to pay appropriate taxes on the original sale of my gold, and if gold went up, taxes on capital gains of the future contract ( I think they are reported to the IRS directly beginning in 2013 TY), and the interest on your loan.&nbsp;&nbsp; Central Banks don&#039;t worry about this, so they can lease gold at a negative rate as long as their plan brings a net gain at the end.</p><p><br /></p><p>Some will feel it is a dedicated action to only lower or suppress the price of gold to prevent the public from seeing the &quot;true&quot; value of gold. I do not subscribe to this theory, I think it is all about profit. IMO.</p><p><br /></p><p>Jim[/QUOTE]</p><p><br /></p>

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