Gold Financing, Simplified™

Financing working capital is a challenge for any business. You want a source of finance that scales with your business growth, that can be relied upon and not withdrawn without notice, and which is flexible enough to accommodate fluctuations in your business.

When your working capital needs include gold, your financing plan becomes more complex. Gold brings with it the need to manage price volatility, unless you can find finance which is free from the need to hedge.

Introducing Monetary Metals® Gold Financing, Simplified™. Our unique gold lease solutions are scalable, reliable, and flexible. And you don’t need to incur the risks and costs of hedging.

We find that businesses which need gold generally obtain financing from one of the following sources. Each has advantages and disadvantages.

Type of Finance Scalable Reliable Flexible Hedging Free Cost
Unallocated Deposits Zero
Owner’s Capital Low
Monetary Metals Low
Consignment Hidden
Cash Loan Medium
Outside Equity High

Larger businesses often obtain their gold from a bullion bank. To understand the risks of this source of financing, it is helpful to look at how bullion banks obtain their gold. They get a baseline amount from central banks plus unallocated gold deposits from their clients. Central banks have been decreasing their gold leasing activities and this trend is likely to continue for political reasons. Witness the “Repatriate Our Gold” movement in Germany.

There is no data available on the unallocated deposits, but we think this, too, is likely in a declining trend. Especially when gold depositors become aware that Monetary Metals® is offering to pay them interest on gold that now earns them nothing.

The bullion banks obtain gold at the margin from the market. The cost of this gold is subject to changes in the prevailing interest rate (which is rising as this website is published January 2017) and also to the gold forward rate. The latter can not only cause the gold lease rate to increase, but it can also cause the gold leasing market to contract. It’s not occurring now, but see our gold lease rate charts showing when it occurred in the past.

We believe Monetary Metals® offers a better way. Please call one of our corporate sales team at +1 (646) 653-9729 or fill in our inquiry form on the right to learn how we can help solve your gold funding problem and discover how our True Gold Lease, Gold Bond, and Gold Real Bill solutions are Gold Financing, Simplified™.