EMP 13.3% 1.3¢ emperor energy limited

Gold Lease Rates- What gives!, page-2

  1. 328 Posts.
    Hi tophat,

    Usually the Gold Lease Rate is lower than LIBOR ... called contango.
    I think the story is that Central Banks lease out the gold to cover storage costs. The institution that borrows the gold sells it and puts the cash proceeds in the bank at the LIBOR rate, returns the gold plus a little bit more to make up the lease rate, and makes a profit.

    In a situation of backwardation, the Gold Lease Rates are higher than LIBOR. I guess that it would be better to borrow cash at LIBOR, buy gold and lend it at the Lease Rate.

    What are the current LIBOR rates? Must be close to backwardation?

    Just pondering......

    GK
 
watchlist Created with Sketch. Add EMP (ASX) to my watchlist
(20min delay)
Last
1.3¢
Change
-0.002(13.3%)
Mkt cap ! $4.43M
Open High Low Value Volume
1.3¢ 1.3¢ 1.3¢ $1.56K 120K

Buyers (Bids)

No. Vol. Price($)
6 2009906 1.2¢
 

Sellers (Offers)

Price($) Vol. No.
1.4¢ 100316 1
View Market Depth
Last trade - 11.40am 29/03/2024 (20 minute delay) ?
EMP (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.