Monetary Metals leased gold to Gold Bullion International, to support the growth of its gold jewelry line. The metal is held in the form of inventory in a third party depository.
For more information see Monetary Metals’ press release.
Commencement Date: May 29, 2019
Term: 1 year
Lease Rate: 2.0% net to investors
The lease is 260% oversubscribed.
The graph of the offers is less illustrative than others, as there was no rate-setting auction phase. We used only the call for metal phase, with the rate pre-determined at 2% based on comparable leases. Even in the call for metal, investors have the right to offer at higher interest rates–this is why there are some offers going up to higher rates.