> >Gold is money. There is a big gold banking industry out
> >there. It's on the secretive side so I can't give you
> >numbers. Like any money or currency, it has it's interest
> >rates. In gold's current case they are called lease rates.
> >What's the matter with the 30 day gold lease (interest) rate?
> >http://www.kitco.com/market/LFrate.html
> Bob, do those figures mean that (example) Gold can be leased, for one
> year, for (only!) 1.8075 % ?

Yes (at the moment). And those low rates makes sense. If I loaned 
you gold, I don't have to worry about inflation decreasing the 
real value of the amount that you pay me back at the end of the 
period as much as I would if I loaned you fiat currency. Thus
the lower rates than fiat currencies. Well.... almost all. There's
the Yen carry trade going on. The one fiat currency that's cheaper
to borrow than gold. That's another story.

> So I could borrow 100 kg of gold and pay only 1.8% interest, for a year?

Maybe, maybe not. Depends on whether you are on of the big boys
that can participate in the gold banking industry or one of the 
average Tom, Dick and Harrys that can't.

> Doesn't that seem very low?

Yes (but not as low as borrowing Yen), and it makes sense.
Gold is good money stuff in a bunch of ways.


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