On the 30th January the LBMA stopped providing GOFO data from which Lease Rate's could be produced.
Here we have constructed our own GOFO/SIFU (I'm calling it GOFU for Gold Futures - SIFU for Silver Futures) from CME (COMEX) futures data.
Using GOFU/SIFU we can now construct our own Implied Lease Rates as a replacement for the LBMA data.
For gold, at the long end (12 months) the data (taken over the last 7 years) shows a high correlation of 96% and at the short end (1 month) a correlation of 80%.
For silver, at the long end (12 months) the data shows a high correlation of 92% and at the short end (1 month) a correlation of 73%.
Please note that these are only implied lease rates & have zero to do with the real world of leasing gold or silver.
They are generated so as to watch via the contract spread x time decay the internal pricing pressures for the metals.
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The information contained in this article is for information purposes only and does not constitute investment advice or a recommendation to buy or sell.
