Gold Lending Rate Most Negative Since 2001 on Longer Refining
By GCRU Gold News on Tuesday, November 18 2014, 04:51 - Permalink
The rate at which gold is lent for dollars is the most negative in 13 years as refineries spend longer recasting bars from vaults to meet demand from Asia, where consumers prefer smaller ingots and jewelry.
“There’s a lot of demand going into Swiss refineries which are basically transforming those big bars into smaller bars,” Bernard Dahdah, an analyst at Natixis SA in London, said today by phone. “The leasable stuff is only for big bars. Once those bars become small bars and they go into households, they become much harder to go back into the market into a leasable form.”
Wait times for smaller items at Swiss refineries have grown to as much as three weeks from as little as a day in September, according to Natixis.
Gold Lending Rate Most Negative Since 2001 on Longer Refining
