via Safehaven - Gold Seasonals

Should treasury bill rates go negative in either the UK bond market or with the ECB, then very likely this will light a fire under the gold price. Negative nominal rates have been discussed with the ECB since the Eurozone crisis deepened this summer. Things start up once again by the end of August and short term rates have nowhere else to go but down, into the negative.

Canadian select treasury bill rates are just below 1%, the outlier in the treasury bill markets in the western world. Surely this has nothing to do with the propping up of an agonizing housing bubble at length?

Gold prices are directly linked to LIBOR rates, since the GOFO minus LIBOR is the gold lease rate. Surely bullion leasing has to be increasing exponentially to meet with a presumed strategem to overwhelm physical offtake. Surely manipulated rates has to be the goal of bullion lease sales, rather than that of price fixing alone. Surely the event that adds life once more to the gold bull market will be when gold lease rates climb above treasury bill rates.

"And so far this year, gold's summer sale is looking utterly typical."

source: http://www.safehaven.com/article/26234/seasonal-recycling-in-gold

Gold Prices Going To The Moon

It is, after all, just a rise in the gold price:

http://youtu.be/TkmmyXb9Svw

-F6