Silver's Suddenly Surging Lease Rate is Indicating Silver Bar Shortage at the Exchanges
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The implied silver lease rate (the cost of borrowing silver bars on exchanges) has been surging since late December 2023 indicating a silver bar shortage at the exchanges. When paper (naked) traders are called to make silver delivery on their paper short trading positions they’ve sold into the market, they typically source such silver bars by leasing them, making delivery, and then repaying the metal later with interest when they are able to source such bars from refineries, bullion banks, etc.
Silver's Suddenly Surging Lease Rate is Indicating Silver Bar Shortage at the Exchanges
Silver's Suddenly Surging Lease Rate is…
Silver's Suddenly Surging Lease Rate is Indicating Silver Bar Shortage at the Exchanges
The implied silver lease rate (the cost of borrowing silver bars on exchanges) has been surging since late December 2023 indicating a silver bar shortage at the exchanges. When paper (naked) traders are called to make silver delivery on their paper short trading positions they’ve sold into the market, they typically source such silver bars by leasing them, making delivery, and then repaying the metal later with interest when they are able to source such bars from refineries, bullion banks, etc.