Silver Lease Rates

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Zoltan's picture
Joined: 06/14/2011
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Silver Lease Rates

Can anyone provide an explanation as to this unusual pattern in lease rates?


This is a pattern that has repeated on a monthly basis for a long time.  I have posted on it at Kitco.

Rates spike from negative to positive at one month intervals.

Welcome input from the enlightened readers.


Edited by admin on 11/08/2014 - 06:08
mrgneiss's picture
Joined: 06/14/2011
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It just seems to reflect

It just seems to reflect tightness in the silver physical market, if you look at the dates where lease rates have stayed elevated for longer lengths of time - those periods coincide with strong silver price increases.

Some have said this is a bearish indication as it indicates the EE is borrowing silver to sell it into the market and smash the price - this doesn't pass the smell test because usually the price increases when lease rates spike up and secondly - since when does the EE need silver to short it?  That is the advantage with no position limits - you can naked short silver until the cows come home - but then the short squeeze damage potential is greater in a bull market.

What handle do you post under at Kitco?


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