John, my understanding of bank gold leasing is this: The banks LEND their gold to someone (a mining co., etc.) then the SOMEONE has the option to use it or sell it, but eventually they have to give it back to the LENDER. But it is now cheap to lease gold at about 1%, so there is no urgency to replace it. This BORROWING (leasing) has gotten to be so extensive that it has filled the gap between the Supply and Demand shortfall, putting pressure on metals prices to the downside. However, when the lease rate begins to climb, there will be a scramble to COVER their SHORT POSITION (leased gold) and return it to the lender. This is where the buying comes into play, as we get the SHORT COVERING RALLY. This will kick off the run in the gold market. This will most likely happen when the dollar begins to fall and raises the value of gold denominated in US$.
As for the computer boards, all are soldered with Gold, and as you know the computer industry does not seem to be slowing down. If anything, it is expanding in corp. america.
As for China, I don't think that their currency will be a major currency player, there is too much political instability.
Best of luck in your trading
Phil
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