Silver Lease Rates For Dummies

Discussion in 'Silver' started by Ponzi, Jul 10, 2012.

  1. Ponzi

    Ponzi New Member

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    I have a very limited understanding of Silver lease rates and would appreciate some help.

    1) A Clear and Concise Definition ?
    2) Further Reading?
    3) Its Affect on Price ?
    4) What to 'take away' from fluctuations like the one observed recently?

    [​IMG]
     
    Ponzi, Jul 10, 2012
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  2. bordsilver

    bordsilver Well-Known Member Silver Stacker

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    bordsilver, Jul 10, 2012
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  3. BlackSheep

    BlackSheep Well-Known Member Silver Stacker

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    The lease rate charts on Kitco seemed "wacky" on the weekend, and even wierder stuff happening now - I can't help but wonder if it has something to do with "liborgate", although I'd put higher odds on it being a stuff up by someone at kitco? (have seen some after the event adjustments to their stats before)

    e.g. all of the rates for Platinum showed 0% on the weekend, and the 12 month rate for both Gold and Silver just went up over 1% which is a massive move compared to recent history - although those changes are not reflected in the linked charts on the kitco site (either "fat fingers" or chart hasn't been updated?)

    http://www.kitco.com/market/LFrate.html


    There's some good discussion in this thread about lease rates:
    http://forums.silverstackers.com/to...mackdown-indicator-04-monthly-lease-rate.html
     
    BlackSheep, Jul 10, 2012
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  4. projack

    projack Well-Known Member Silver Stacker

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    The market benchmark for silver lease rates is LI(E)BOR-SIFO= SILVER L(I)EASE

    Basically if you have a BS libor you get BS lease rate
     
    projack, Jul 10, 2012
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  5. bron suchecki

    bron suchecki Active Member Silver Stacker

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    The SIFO rates on the LBMA website are not showing that divergence, so I think it is just a problem with either the LIBOR rate or the feed for LIBOR Kitco is using.
     
    bron suchecki, Jul 11, 2012
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