The silver loan rate $XAG continues to rise, signaling a potential supply shortage?
The latest data shows that the 1-month silver lease rate has increased to 0.517%, maintaining a positive trend and continuously expanding over the past month.
Typically, an increase in lease rates reflects a greater demand for physical silver compared to the available supply in the market. Notably, this trend occurs amid a rather negative sentiment among retail investors in the U.S. towards silver, indicating that the pressure isn't coming from retail speculation.
If global silver inventories continue to stay low while physical demand rebounds strongly, the market could face the risk of another supply shortage or a "silver squeeze" similar to previous periods of tension.
Currently, this is not yet a confirmed signal of a supply crisis, but it is an indicator worth monitoring as factors like inventory, industrial demand, and investment flows are beginning to create pressure on the physical silver market.
#Silver #Gold
The latest data shows that the 1-month silver lease rate has increased to 0.517%, maintaining a positive trend and continuously expanding over the past month.
Typically, an increase in lease rates reflects a greater demand for physical silver compared to the available supply in the market. Notably, this trend occurs amid a rather negative sentiment among retail investors in the U.S. towards silver, indicating that the pressure isn't coming from retail speculation.
If global silver inventories continue to stay low while physical demand rebounds strongly, the market could face the risk of another supply shortage or a "silver squeeze" similar to previous periods of tension.
Currently, this is not yet a confirmed signal of a supply crisis, but it is an indicator worth monitoring as factors like inventory, industrial demand, and investment flows are beginning to create pressure on the physical silver market.
#Silver #Gold