A Lease Rate Default before the Metal?

From a 2006 Article

Silver owners on COMEX can not lease their silver out and deliver it at the same time. A rush for delivery would cause a huge shortage in the lease silver market… If COMEX is a big lease supply for silver, then just as Central Banks have leased out most of their gold reserves, I strongly suspect that that much of the silver in COMEX vaults is stacks of paper lease contracts. That means, that as deliveries of COMEX silver continue, there will be a default as owners withdraw their metal from the vault. The default should occur first in the lease market, where it will be hidden from public view.”

Just interesting!

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