by David Jensen, Jensen’s Economic, Precious Metals, & Markets Newsletter:
The UK’s BullionVault, partially owned by RIT Capital Partners which is an investment arm of the Rothschild family, reports the following rates to lease physical gold and silver in London on Monday February 3, 2025:
Gold : 4.5% for a 1 month lease
Silver: 6.5% for a 1 month lease
In the article, Bruce Ikemizu of the Japanese Bullion Market Association says of the silver lease rate “6.5% for silver is almost at a level that could be called a squeeze”.
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Ikemizu further comments regarding the London market “Metal for immediate delivery has been so in demand that short-dated forward rates have moved into a rare backwardation, pushing lease rates higher.”
In addition, on January 24, 2025 CEO of Scottsdale Mint Josh Phair reported NY lease rates of 10% for gold. I am trying to get in touch with Josh Phair to confirm and will let you know if I hear back from him.
Implied Lease Rates constructed from digital futures prices for gold and silver have not yet responded and are providing a lower indication however, they are expected to catch up with time. We’ll see.
Silver And Gold Will Increasingly Be Squeezed As Relentless Physical Demand Ends Leveraged Promissory Note Pricing
With an estimated 400M oz. of gold cash/spot contracts and 5B oz. of silver cash/spot contracts standing in the London market and with the ‘free float’ (actual metal bars available to market) standing at a tiny fraction of this level, if the current run for delivery of physical metal continues it will be terminal for the decades-long price setting fraud operated by the Bank of England in The City of London’s market – the world’s largest gold and silver trading cash market.
The fact that Reuters and the Financial Times are claiming that we are seeing market dysfunction merely because of a slow-down in the lease market logistics is interesting. London traders scrambling to lease sufficient metal to meet demands for metal delivery against largely unbacked cash/spot gold and silver notes is telling – the surging lease rates tells us that not only are logistics slowed-down but there is insufficient metal available to be leased – they don’t have the available metal.
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