Friday, February 10, 2012

Short Term Silver Lease Rates Go Negative

Silver's lease rates are again plunging, as the 1 month and 2 month rates have suddenly gone NEGATIVE!
The 1 month silver lease rate has plunged to -0.3%, and the 2 month rate to -0.2%
This means that should you be a bullion bank able to borrow silver in size, you will be PAID 0.3% for the privilege of taking the unwanted phyzz off of the hands of those leasing it. 
Clearly the cartel is dumping paper silver on the market in massive quantity- likely in an attempt to cap silver at $34 and prevent a breakout past $35.  With yesterday's news of the CME attempting to suck paper traders back into the futures game with margin cuts in gold and silver, and short term silver lease rates turning negative, is the cartel planning another major silver raid?

This jives with info we have received from a source within JP Morgan
, who confirms what the COT reports are indicating- that Blythe and her gang have been adding to their naked silver shorts at the opportune time to close out of all their remaining short positions.
Clearly, the game (manipulation) will go on until the physical supply issues reach critical mass and detonate.