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<p>[QUOTE=&quot;fatima, post: 1385152, member: 22143&quot;]Dear Heart.&nbsp; If you are going to quote something that you seem to know nothing about, then you should at least try and do the reasearch.&nbsp; This is direct from the Kitco Glossary </p><p><br /></p><p><br /></p><blockquote><p><b><a href="http://www.kitco.com/glossary/lease_rates.html" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.kitco.com/glossary/lease_rates.html" rel="nofollow">Kitco Glossary: Lease Rates</a></b></p><p><br /></p><p><i>The lease rate is the cost of borrowing gold. In much the same way that individuals borrow dollars, pay an interest charge, and then return dollars to the lendor, gold bullion participants will borrow ozs of gold, pay a borrowing cost, and return the ozs of gold to the lendor. <b>The debt is measured in terms of ozs as opposed to dollars. The value of the metal when it is being borrowed or returned is not a factor.</b> The central banks are the main lendors of gold and the borrowers are the larger industry participants. The lending and borrowing of gold is pretty much reserved for bullion bankers, mining companies, and jewelry manufacturers. You can ask your bank manager to lend you 10 ozs of gold, but you would almost certainly draw a confused look on his face.</i></p><p><i><br /></i></p><p><i>There are two factors that determine the going lease rate which is determined by market forces alone. <u>One is the difference in demand between gold for immediate physical delivery ( spot ) and gold contracts for later delivery ( futures ) </u>. The other being the current interest rates for borrowing $US dollars......</i> </p></blockquote><p><br /></p><p>:too-funny:</p><p><br /></p><p>Obviously you had no idea what you were talking about. I don&#039;t usually cite other web sites to argue for me, but since you have established that Kitco is a definitive source, then so be it.&nbsp; It proves you wrong.&nbsp; &nbsp; Gold and Silver are not leased for dollars, they are leased for ounces. There is absolutely no vehicle for banks to raise cash reserves.&nbsp; &nbsp; Second, as stated in this definition it&#039;s affected by the price of gold in the futures market.&nbsp;&nbsp; i.e the Comex which is what we are discussing here.&nbsp;&nbsp; </p><p><br /></p><p>My comments which you cherry picked of context,&nbsp; ignored that a bank hit did come, as stated, and that it wasn&#039;t successful at this time.&nbsp; I also said that usually this will go on for a while until one side gives up.&nbsp; If you are going to quote me, then make sure you get all of it.&nbsp; I won&#039;t persist that you prove this very common practice, as you state, that banks use gold &amp; silver reserves to boost cash reserves by leasing.&nbsp; The kitco definition proves this absolutely wrong. </p><p><br /></p><p>No where in this topic did I state that negative lease rates result in lower silver prices.&nbsp; What I did state was that it is an indication that attempt(s) will be made.&nbsp; I&#039;m not foolish enough to predict success at it.[/QUOTE]</p><p><br /></p>

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