Jive Dadson

The Disconnect Between Supply and Demand in Gold & Silver Markets

I think there's a bug in the Kitco software that's causing it to show the Gold Forward Offered Rate (GOFO) rather than the lease rate. In any case, the nominal lease rate is just a computed number - the difference between LIBOR and GOFO. If it goes negative, that does not mean a bullion bank will actually pay you to store and insure their metal.

In short, this whole article is based on a misunderstanding.