Monetary Metals Leases Gold to Gold Bullion International
GBI saves money financing Auvere™ 24k jewelry, with a Monetary Metals lease
Scottsdale, Ariz, June 17, 2019—Monetary Metals announces that it has leased gold to Gold Bullion International, to support the rapid growth of GBI’s fine 24k gold jewelry business, Auvere™ (www.auvere.com). The metal is held in the form of jewelry inventory.
A Monetary Metals gold lease is a win-win for both the lessee and the lessor. The lessee gets low-cost gold capital for inventory or work-in-progress. The gold is leased from investors, who earn a current return in the form of interest (2% per annum in this case), rather than paying storage fees. Such interest is paid in gold, which is not subject to chronic dollar devaluation.
In Monetary Metals’ innovative process, each investor decides how much gold to offer, and the minimum acceptable rate of return. The deal closes at the lowest rate that provides enough metal to meet the lessee’s need, and all investors in the deal are paid that rate.
“There was robust investor demand for this lease, with about 260% oversubscription,” said Keith Weiner, CEO of Monetary Metals. “Gold Bullion International is an excellent custodian for our investors’ gold.”
“Monetary Metals provides GBI a cost effective and reliable source of inventory financing for our exciting line of luxury gold jewelry,” said Marc Scher, President of GBI.
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.
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About Gold Bullion International. Gold Bullion International™ is one of the most trusted names in the precious metals industry, servicing institutional and retail clients around the world. GBI offers a wide variety of bullion products and technology services in addition to proudly offering “Auvere,” a line of 24k gold jewelry.
Marc C. Scher, President and Chief Operating Officer
Congratulations Monetary Metals for another successful deal. Looking forward to many more in the future.
Where/how does the lessee get the additional 2% of gold? Certainly, the dollar as medium of exchange is involved. To backstop the gold bond concept, doesn’t an abstraction (fiat) still have to occur?
Yes I believe the dollar is necessarily used as an intermediary because the business would not have a gold income. Meaning the customers would not be paying in gold for a gold product. The business could get the extra 2% of gold by charging a premium over spot for their product and immediately upon sale buying gold for future delivery. They would sell for example a product containing 1 gold ounce at a dollar amount that would allow the business to then purchase more then 1 gold ounce for future delivery and pay Monetary Metals the interest, plus other operating expenses, and finally (hopefully) still make a profit.