Negative silver lease rates do not always mean an impending take down, but they do warrant caution, particularly after the past week's rally and the commercials doubling of net short positions over the past month.
While silver lease rates remained in negative territory throughout much of the early 2011 bull move in silver, the sharp declines in September and November preceded sharp sell-offs in the metal.
The current decline has been more of a gradual decline than the 2 previous mentioned.
For now, keep your eyes on silver's lease rates, and be prepared to Stack the Smack should another significant smack-down commence.
Charts courtesy Kitco