Scottsdale, Ariz, October 20, 2020— Monetary Metals® announces that it has leased gold to L’Orfebre, a European refinery, to increase its access to raw materials and expand production capacity. The initial lease tranche was raised off-market, and the interest rate is not yet published.
Monetary Metals obtains gold and silver from investors, who earn interest on their metal rather than pay to store it. The interest comes from placing the metal with qualified companies who pay to use it, typically for inventory or work-in-progress.
Investors benefit by earning a return, rather than incurring vault costs. Metal-using businesses benefit, as the lease tends to be their lowest-cost capital. Leasing is more user-friendly, with no need for hedges, as leased gold is not an asset on a company’s balance sheet.
L’Orfebre is located in Andorra, a microstate between France and Spain. They import raw material from South American mines, using the latest technology for waste treatment and recycling in their refining process.
The Latin American gold mining industry has faced difficulties in recent years. Several refiners have stopped buying their output, amidst a growing regulatory compliance burden. L’Orfebre demonstrates strong ethics and transparency, and Monetary Metals leasing benefits the ailing Latin American mining industry as well as its employees.
“The increasing restrictions on buying from the Latin American gold mining industry has forced miners in developing countries to accept lower and lower prices. L’Orfebre is paying a fair price to the miners,” said Keith Weiner, CEO of Monetary Metals. He added, “Monetary Metals can support an innovative refinery, while paying interest to gold investors.”
“We’re very pleased with Monetary Metals’ gold lease solution. It provides us with a flexible funding source for our raw gold purchases.” said Bernat Migo, CEO of L’Orfebre. “It is helping us get to the next level while maintaining our focus and efforts on our responsible sourcing policy compliant with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.”
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 (minters, miners, refiners, jewelers, dealer, pawn brokers, etc.) In addition, Monetary Metals‘ market analysis and proprietary charts, including the gold forward rate, are followed by gold investors and gold-using businesses. The company’s content is widely syndicated on gold, alternative investing, and mainstream sites.
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L’Orfebre was established with the purpose of helping and expanding the Andorran economy, becoming a worldwide referent in gold refining. The refinery is focused on the analysis of metals as well as processing jewels and investment gold.