Monetary Metals Closes Insured Gold Financing at 4.5%
Monetary Metals Fourth Lease to Scottsdale Precious Metals Prices 1% Lower
Scottsdale, Ariz, May 9, 2018—Monetary Metals announces that its recent gold financing of Scottsdale Precious Metals priced at a gross interest rate of 4.5%, a full percentage point lower than previous deals. This is the first one covered by Monetary Metals’ new insurance.
Rates are set by investors in an auction process. The interest rate on two previous gold leases to Scottsdale Precious Metals was 5.5%, and a silver lease was 5.75%. The key difference now is the extra layer of insurance, which reduces the risk that investors could lose their gold.
Monetary Metals published a graph showing the amounts and interest rates of all investor offers. The deal was highly oversubscribed.
“Lower rates obviously benefit gold-using businesses,” said Keith Weiner, CEO of Monetary Metals. “And lower risk benefits investors. Partnering with a leading global insurance carrier is a win for everyone.”
Jon Goldberg, CEO of Scottsdale Precious Metals said, “We never expected to be able to get a rate this low. This is transformative to our business, and we are able to carry more inventory, which increases our sales.”
About Monetary Metals
Monetary Metals® is Unlocking the Productivity of Gold® by offering a Yield on Gold, Paid in Gold® to investors, and Gold Financing, Simplified™ to gold-using businesses. The company manages the Gold Exponential Fund™, which provides a way for investors to own gold and earn a yield, by trading between gold and silver. Monetary Metals publishes groundbreaking research to help investors understand the emerging role of gold as the ultimate measure of wealth, including the MM GOFO™ gold forward rate.
Addison Quale, Relationship Manager
(646) 653-9729 ext. 1