VANCOUVER (Silver Gold Bull) -- Experienced precious metals investors are familiar with the topic of "negative lease rates" for gold and silver bullion. However, even novice investors can infer what is being discussed: paying someone to "borrow" gold/silver bullion.In general, any time we contemplate a situation where lenders are paying borrowers to borrow, the word "dump" immediately comes to mind. This is because we begin the scenario with a lender choosing to enter into a transaction with the deliberate outcome of losing money. Because the world of commerce is entirely devoted to earning profits rather than creating losses, this automatically also implies market-manipulation -- and thus fraud. It is within this general context that we can now look at the particular subject of the gold and silver markets, where lease rates are now usually negative (and are negative again
- Buyers are being forced to wait extended periods to take delivery. When they receive delivery, all of their stock is comprised of newly refined bars.