Industrial Users: Gold Financing, Simplified™
Industrial manufacturers need gold both as a buffer of raw materials, as well as embedded in its work-in-process. While the gold may not be a large component of the total cost of goods sold, why leave money on the table?
Using equity capital to finance gold is the most expensive way to go. Using debt exposes you to the risk of a falling gold price.
A Monetary Metals® lease may allow you to free up capital currently needed for gold inventory.
Manufacturers often need not only gold in their work-in-process, but also a static quantity of gold that is permanently stuck in the machine. For example, when sputtering gold, there is no way to consume all of the target. However, the whole target must be pure gold. Traditional means of financing the target are either expensive, such as equity capital, or expose the company’s balance sheet to losses when the gold price drops, such as a loan. Leasing the gold stuck in the machine is an easy way to save money and reduce risk and complexity.