30% lease rates? I would be shocked but it could happen. Here is something about lease rates from the-privateer. It is referring to gold lease rates but see no reason it would not apply to silver as well:
"Two weeks ago, on April 19, our main Gold commentary focused on signs to watch for, and prominent amongst those signs was Gold lease rates. We can sharpen that commentary even more now, with the one year rate bouncing around at 1.0% and Gold heading inexorably higher.
The more that this present $US Gold market is perceived as a BULL market, the farther ahead the time horizon of those interested in Gold will become. As this time horizon lengthens, attention will focus on such things on longer maturity contracts on the COMEX and on longer-term Gold lease rates. What we are looking for here is for the one year rate to establish a firm floor - likely at or about the 1.00% level - and then start to RISE.
Such a rise, if (when) it occurs, could very well be the signal for an upside acceleration in the Gold price. So far, the Gold move has been pretty gradual, but in all BULL markets, there comes a phase, after it is recognized by a "critical mass" of investors, when the move speeds up, often dramatically. Watch the Lease rates closely."
the-privateer.com
Wayne |
