Silver Lease Rates Rise Sharply – Bond Yields in Portugal Rise to Record

Tyler Durden's picture

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william the bastard's picture

Why lease when you can bury?

tmosley's picture

You don't realize it, but you are exactly right.  No-one wants to lease silver, so the rates have gone up.  They would, in fact, rather bury it.

william the bastard's picture

the decision from the BOE could have ramifications for gold prices this morning. Gold prices could also be partially undermined by news that South African gold production in December rose by almost 3% above the 2009 December production tally. Another element that might be pressuring gold prices this morning, is evidence that some gold derivative instruments saw an outflow overnight.

You missed the irony on bury vs buy. But then you're no fun anyway.

tmosley's picture

You're just saying that because I'm smarter than you.  Also wealthier and better looking.

SWRichmond's picture

This is just an ongoing indicator of precious metals going into hiding.  Fekete called it: someday gold will not be available at any price.

youngman's picture

I agree with you on this...its getting very quiet but yet demand for the real stuff is increasing....I think people with money are moving into PM´s.....Carlos Slim was on this morning and he is.....and I bet all the JPM boys are too.....but their computers are keeping the prices down......soon and I believe in the next month...March is delivery month for silver...Gold this month....things will fall apart at the Comex...but I also believe the Feds will come in with some "save"....I am watching every is exciting....sad though also

kentfinance's picture

except for the guys selling the physical - they are having to lease it because of the growing shortage - so rates going up. bullish.

bankrupt JPM buy silver's picture

Found a pic of the silver master, should put a smile on yourface ;)

yellowbr's picture


Ecoman11's picture

This guy is reporting Silver sell outs as they happen daily.!/Silver_Watchdog

umop episdn's picture

Our 'leaders' are made of corruptium, our money made of kindling, our economy made of lies...and precious metals provide a way out. No rule of law, no way I'll play. 

jus_lite_reading's picture

Bravo. The whole world is upside down...

unwashedmass's picture


None of this matters. The government is going to fund JPM's continued manipulation of the silver and gold markets because they can't NOT do it.

Quite a place we've come to in the "freest, fairest, most transparent" markets in the world, Quite a place.

We have to tolerate the most extreme corruption preserve global stability....

and continue to provide JPM'ers with multi-generational wealth....

Fortunes Favor's picture

I thought this post would go well with the above list of P.M. stories: Precious Metals Outlook: Newmont(NEM) Takeover of Fronteer(FRG) Evidence of Phase II @

jus_lite_reading's picture

Again, for the second day in a row, pay no attention the rising yields of the PIIGS- the ECB said, "we've got everything under control! We just bought a used printing machine from the Fed..."

slow_roast's picture

Silver is poised to soar.  It seems that in the age of digital everything, the markets have completely forgotten that a physical shortage of something, in this case silver, should send prices exorbitantly higher.  Silver's move in the 2nd half of last year may look like child's play as more buyers head to Comex and stand for delivery.


If you can't get your 100oz bars in Canada, or Australia, or Europe, then where will you turn? 

RobotTrader's picture

Looks like a mad rush back into the U.S. Fiatsco today.

Gold and silver down today in U.S. Dollar terms.

But foreign currencies are getting crushed.  I'd keep an eye on gold priced in other currencies, could see a decent rally:$GOLD:FXE,$GOLD:FXY,$GOLD:FXC,$GOLD:FXS,$GOLD:FXA,$GOLD:FXM,$GOLD:FXB,$GOLD:FXF|D

terryg999's picture

Lease At The Fu*ken Dip

Zero Govt's picture

+1  ...... or ETF the fuken Dip

THE DORK OF CORK's picture

Will they just stick the Euro M1 on the Euro balance sheet and be done with it - the situation in Ireland is getting absurd , the liquidity for basic transactions is drying up - this causes far more damage then inflation of the money supply as all productive activities stop as people start to hoard.

Stopped into my bank recently and the desk used to wire money was no longer functioning - some poor staff member was handling all transactions at the counter of a large branch !

She had the courage to tell me to go back down to the old transactions desk - a manager came and had to deal with my transaction.

You have to admire that teller - I am sure she got into trouble for standing up for herself - you cannot buy dignity , you either have it or you have not. 

jus_lite_reading's picture

Thank you for the real world update. Can you tell me more- when are the elections? What do you expect? My reading has it seeming the Irish people are pulling money out of banks left and right. I know that if I was living there, I would have done that months ago and bought silver.

THE DORK OF CORK's picture

I believe they have delayed further recapitalisation of the banks until after the general election which is less then a months time - I would not be surprised if some bank Bond holders took a haircut after this so as to throw some meat towards the crowd - but the majority have escaped via the ECBs rollover prevention plan.

We will have to default on the ECB itself if we have any dignity left and I am afraid I do not see it in large measure yet as it will take tremendous courage because  we have little internal wealth but euro deposits that can be inflated or defaulted at will. 

jus_lite_reading's picture

Interesting, thank you. Yes I do believe it's been delayed until after the elections. We all know why...

Catullus's picture

Backwardization with the lease rates baked in?

oogs66's picture

Where are you getting your portugese 10 yr bond yields?  I don't get them quite so high.  I look at the 3.85's of 21.  Are you using the 4.95's of 23? It seems like those traded closer to your yield.  Those bonds should trade wider because the $ price is not insignificant for such a stressed situation.  The higher coupon basically forces the yield to be higher to compensate for the higher price of the bonds.  In any case the situation is clearly bad and getting worse, regardless of which portugese bond you look at. 


I remain convinced that yesterday's decision to delay capitilization payments in Ireland til after the election are significant.  Is someone finally realizing the downside is similar, but by letting the banks fail, the people get the potential upside, rather than the bankers?

gwar5's picture

Yep, liked it. 

The fact there is a lot of movement towards metals and real money from serious persons is all good.


Snidley Whipsnae's picture

Mish says that anyone that believes that the Fed is suppressing the price of gold is "wearing a tin foil hat"... fact, he goes on to say that anyone that believes any of the items enumerated below in his 'Theory 1'... is wearing a tin foil hat.

Count me among those wearing a tin foil hat!

Theory #1

  1. The Fed is buying futures to support equity prices. It has done so for 10 years but no one at any trading desk anywhere can confirm. How this happens, and how the Fed keeps all those futures off its books is the best kept conspiracy secret in the world.
  2. The Fed and JP Morgan are suppressing the price of gold and silver. How and why and for what purpose the Fed and JP Morgan would want to do this is subject to much debate. Details of the exact mechanism and who is involved is the second best kept secret in the world, but clues are hidden in 30 year old documents as well as commitment of traders (COT) reports.
  3. The Fed will not let the market drop
  4. The Fed is mysteriously all powerful even though it could not stop the S&P from plunging to 666 in the crash, nor could it stop gold from rising to 1400 from 250.
  5. There is no contradiction between points 3 and 4 because this is a planned conspiracy from the outset so that JP Morgan and Goldman Sachs can rule the world.

THE DORK OF CORK's picture

Never liked Mish - he is a fake Austrian - he believes in the superioty of interest income over wages for a days work - never bought into his twaddle.

taraxias's picture

Mish has been caught on the wrong side of the trade for a long time now. He'll continue to scream deflation even as we are being devoured by inflationary flames. He's being very cagey by slowing shifting his focus from deflation to "blame the unions". In his small mind he hopes that his deflation drivel may ultimately come true if all of us were ultimately forced to accept working for minimum wage.

In short, Mish was okay a few years ago but he is now irrelevant for the most part. 

Snidley Whipsnae's picture

You gotta love his 'point 1'... He neglects to mention that no one has been allowed to audit the Fed nor allowed to count the actual physical gold owned by the US.

He also seems incapable of believing that the Fed would keep multiple sets of books... Meanwhile we know any bank/business that knows that it will never be audited will certainly do anything to retain that status and power.


  1. 'The Fed is buying futures to support equity prices. It has done so for 10 years but no one at any trading desk anywhere can confirm. How this happens, and how the Fed keeps all those futures off its books is the best kept conspiracy secret in the world.'
StychoKiller's picture

...and how the Fed keeps all those futures off its books is the best kept conspiracy secret in the world.'


Computers only respond when you KNOW the right question to ask!

Snidley Whipsnae's picture

"Sitka Pacific Capital Management is an Absolute Return asset manager helping investors manage and grow their wealth independent of the markets. Our clients benefit from our focus on wealth preservation through our absolute return investment strategies, which are designed to provide growth with less volatility and less risk."

EscapeKey's picture

Who's more arrogant - Denninger or Mish?

Snidley Whipsnae's picture

A toss up...

Both are disingenuous when it comes to discussions of PMs...which leads me to believe that they are closet Keynesians and believe that PMs are indeed 'barbarous relics'...

bronzie's picture

" fact, he goes on to say that anyone that believes any of the items enumerated below in his 'Theory 1'... is wearing a tin foil hat."

when I wear my hat I like to sing the song

Tin Foil Hat song

economists_do_it_with_models's picture

Off topic question.

Regarding the recent post about bearish leveraged ETF's/ETN's...

Not sure if anyone else has run into the same issue, but whenever I try to short any of those symbols, I get a message that my broker has no shares available to short.

If the shorts have to buy to cover eventually, could that create a short squeeze where the bearish leveraged ETF's/ETN's might actually flip the script and outperform the bullish ones for a brief while instead of underperforming like usual?

Could those rejected orders be viewed as a contrarian indicator that everyone is too bullish?  Sort of like when Citi was unavailable to short when it got beat down to less than $4 back in 2008/2009?

bronzie's picture

"Could those rejected orders be viewed as a contrarian indicator that everyone is too bullish?"

I'm not an expert on shorting but doesn't it vary from broker to broker what shares are available for shorting?  Your broker may not have any but another broker does?

Dick Darlington's picture

And now Portugal is one of the best performing market in ten yr sector. JCT did a nice 40 bps stick save and all is well again. Very little makes sense in this centrally planned ponzi world nowdays.

Bahamas's picture

At this point: where's the difference between the Fed and the Ecb? They both are owned by the same private banks, right?


Hephasteus's picture

Needs moar. Underwater mining, can't eat it, the fed is going to but a stop to the fed's qeIII, rumors that jp morgan found a stash of silver someplace trolls.

Sudden Debt's picture


Mike2100's picture

Yes, really it is speculative move.

What changed for Markets send Portugal's yield to this high levels. NOTHING!
SPECULATORS are working once again.

Portugal was one of the best countries in EU last year with exports raising  16% and GDP 1.4%, January the income from taxes to reduce public deficit rose 15%, so what markets want more to see the reality.

It is insane how can inteligent people to accept that this Portugal's bond moves to be normal. Do this people can't read numbers anymore?
Speculators drive their cars with closed eyes, no more words are needed!!

Lusitaniae Habilitas

A_MacLaren's picture

Plata Putas!

Regarding the consolidation of the Silver Manipulation cases against JPM and HSBC, does anyone know it that includes the RICO suit that was filed as well as the other non-RICO suits, and does or would this impact the outcome(s)?

Not being a lawyer nor playing one on teevee nor the internet, would this be multiple allegations/counts that would be independently determined?

gwar5's picture

Yes it includes them (from GATA). They were consolidated because they were virtually all from NY and could expedite depositions, etc. So said the Judge.

Not a lawyer, but I did stay at a Holiday Inn Express.

FranSix's picture

Silver lease rate should have risen sharply, because the price declined sharply vs. gold since Dec., except with a rebound lately.

Gold lease rates have risen for the same reasons, mostly that gold prices have been under pressure.

Its only when  gold prices are rising and lease rates are rising that the price fixing mechanism is falling apart.  But when precious metals prices rise, then lease rates are bound the dwindle into the negative eventually.  Then we're back into naked shorting of precious metals again on the LBMA, and then filling up with contracts on the COMEX.

If there is a run on the bullion banks, including the ETFs which will honour your request for divestment in physical metal, then being caught with positive lease rates will make the short position in gold look very bad.

There was an effort to buy production out of the mines which failed, so having bullion used as collateral in lending is just another way of supplying the endless chain of short sales contracts.

Not that this will be successful, but there are always central banks with their government's bond market in jeopardy that will be eager for fresh lending of any sort, obtainable through any means.

A far more serious problem is waiting in the wings with another decline in the discount rate into the negative, where it becomes totally impossible to naked short precious metals.  Anybody with an unallocated account had better think very seriously about their gold position being used to liquify the banks.