View Full Version : Idiot's guide to lease rates

30th July 2009, 09:31

I'm just a guy that invested in some physical silver to protect myself from the past year, and have learned a great deal from many of you on here and on other servers in regards to the economy, the bond market, and why silver could be an investment opportunity of a lifetime.

I have one question which I can't really seem to find that can be answered, and it's the situation involving lease rates.

As of now, the lease rates based on one month, 2 months, and three months, are negative, and it appears the 6 month lease rate for silver will be negative fairly soon.

Does this mean that banks are leasing silver out to other banks/institutions/people that sell silver at a rate where they pay people to take it off their hands?

While this sounds bearish with my language, it also makes it appear that they want to "flood" the market, which means they want the price lower....

Any explanation or link to explain would be greatly appreciated.

30th July 2009, 09:55
You know, I asked the same question a few days ago in another thread. I was wondering if people were actually being paid to hold other people's silver, as that is what a negative lease rate would appear to mean. Hopefully someone from this forum can enlighten us.

30th July 2009, 13:26