Scottsdale, Ariz – July 27, 2021 – Monetary Metals announces a 137% increase in gold lease financing to Quantum Metal, the leading provider of gold bullion through the retail bank channel in Malaysia. The one-year investment makes payments in gold to investors at an annual rate of 3%. The deal was oversubscribed by about 300%.
Monetary Metals completed its initial gold lease to Quantum Metal in 2019. The lease has enabled Quantum Metal to grow and expand their business.
“Monetary Metal’s gold financing has been a primary driver of our growth over recent years. As our business expanded, we needed more gold inventory. Monetary Metals has met that demand and continues to be a reliable and flexible financial partner,” said Dato’ Lim Khong Soon, Founder and CEO of Quantum Metal.
Monetary Metals has a disruptive model for gold financing. The company leases gold from investors who own it and subleases it to businesses who need it for inventory or work-in-progress. Gold owners benefit, earning a return on gold rather than pay storage costs. Gold-using businesses benefit, as the lease drives growth and is typically the lowest-cost financing in their capital structure.
Since 2016, the average Monetary Metals lease has grown 57.8% year over year. The company has also been growing the volume of leases, and plans to offer three new gold leases over the next three months.
“Quantum Metal is an excellent case study in the value our financing delivers to the gold industry. The numbers speak for themselves. This lease has grown 137%, which reflects Quantum’s growth over that period. Our investors are putting more metal to work in this lease, and earning more gold,” commented Keith Weiner, CEO of Monetary Metals.
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 (mints, miners, refiners, jewelers, etc.). In addition, the company’s market analysis and proprietary charts, including the gold forward rate, are utilized by gold investors and gold-using businesses globally. The company’s content is widely syndicated on gold, alternative investing, and mainstream sites.
About Quantum Metal
Quantum Metal is the exclusive authorized distributor for the Perth Mint in Malaysia. Quantum’s model is to provide Perth Mint gold products to the Malaysian market by partnering with retail banks. The company engages banks with a revenue sharing model and a proprietary software system which tracks the purchase and fulfilment of gold products, in real time, from the Perth Mint to final purchase. Banks receive immediate incremental revenue, without any capital expenditure. Quantum Metal is building new technology to further integrate the local banking system with their gold product tracking software.