.

I get that people want to make money by leasing the stuff and buying back for cheaper.

When you say...

Shouldn't this affect leasing rates?

 

Yes. I mentioned it.:

 

I read that GOFO data is not being published anymore by LBMA since Feb this year?

 

I found a post by Bron, end 2014, where he discusses negative GOFO. He also points out at the possibility of that being caused by increasing gold leasing rates due to demand by shorts as wrcmad says:

http://goldchat.blogspot.co.uk/2014/12/how-historic-is-this-negative-gofo.html

In another post two days later he discusses the historical implications of negative GOFO, since many claim that in the past negative values were a signal of a bottom.

 

I have learned a lot over the years by reading Bron's posts.

 

So, now the question would be... Why has been GOFO deprecated?
Thinking logically, I can only conjure 3 possibilities:

- it was useless or it became useless
- it's been replaced by something better
- obfuscation

Any idea?

 

And I am still learning so that makes us equally stupid.

 

Regulators. GOFO was done the same way as LIBOR so the banks submitting GOFO quotes just couldn't be arsed with all the extra compliance and risk of getting sued.

 

Obfuscation it is, then!

 

Source: IQtard