Gold Lease Rates in Positive Trend

It’s safe to say that the worst is over in the gold market as lease rates have just made a new high since the dip in the beginning of December. The COT reports also show that the large commercial silver shorts have now been covered for a small part to the extent of the number reported on November 2012. Open interest declined with it.

Chart 1: Gold Lease Rates

I’m not sure what the status is on the silver lease rates, but that trend line should follow the gold market soon.

Bullish on Precious Metals

One very good indicator for higher precious metals prices is the lease rate.

As I predicted here, it was time to buy gold and silver. And now it’s completely obvious that they will do good as lease rates are steadily increasing. I doubled my position in silver.

Chart 1: Gold Lease Rates

I wish I could show the silver lease rates, but Kitco is cheating on us, their chart only shows a flat line…

Chart 2: Silver Lease Rates (flat lines since 2 November 2012)

But all we need is the gold lease rate and then just extrapolate it to silver lease rates.