The 1 month silver lease rate in London seems to be inversely tracking SLV vault flows. When SLV drains silver, the lease rate falls. When SLV adds silver, the lease rate rises.
It's not a lot of data points at the moment, but the pattern is consistent. This indicates that the LBMA's liquid free float vault stock is razor thin as normal market function seems dependent upon liquidity from SLV's vault stock.
@KarelMercx published a table with the 1mo silver lease rates since Feb 9. The 1mo silver lease rate was trending down and hit a low of 1.02% on Feb 20 (Fri). It then started climbing again on Feb 23 (Mon).
While looking at the table, a few things stood out to me:
On Feb13, 1mo silver lease rate dropped by 0.49 (from 2.41% to 1.92%). This was the Friday before a holiday weekend. SLV drained 4.2M ozt that day and another ~13M ozt the next two trading days.
On Feb19, 1mo silver lease rate dropped by 0.74 (from 1.86% to 1.12%). This was the day SLV drained 3M ozt from the NYC vault.
On Feb 23, 1mo silver lease rate started climbing again. This also marked the start of a two day SLV inflow of ~19M ozt.
It's not a lot of data points at the moment, but the pattern is consistent. This indicates that the LBMA's liquid free float vault stock is razor thin as normal market function seems dependent upon liquidity from SLV's vault stock.
@KarelMercx published a table with the 1mo silver lease rates since Feb 9. The 1mo silver lease rate was trending down and hit a low of 1.02% on Feb 20 (Fri). It then started climbing again on Feb 23 (Mon).
While looking at the table, a few things stood out to me:
On Feb13, 1mo silver lease rate dropped by 0.49 (from 2.41% to 1.92%). This was the Friday before a holiday weekend. SLV drained 4.2M ozt that day and another ~13M ozt the next two trading days.
On Feb19, 1mo silver lease rate dropped by 0.74 (from 1.86% to 1.12%). This was the day SLV drained 3M ozt from the NYC vault.
On Feb 23, 1mo silver lease rate started climbing again. This also marked the start of a two day SLV inflow of ~19M ozt.