Malaysia’s leading gold distributor saves money with a Monetary Metals lease
Scottsdale, Ariz, February 8, 2019—Monetary Metals® announces that it has leased gold to Quantum Metal, to support the growth of its business of selling gold through retail banks. Investors earn 4.5% on their gold, which is held as Perth Mint minted gold bars in inventory.
Monetary Metals has a disruptive model, leasing gold from investors who own it and subleasing it to businesses who need it, typically for inventory or work-in-progress. Gold owners benefit, because they earn a return rather than pay storage costs. Gold-using businesses benefit, as the lease is the lowest-cost money in their capital structure. And the lease is more user-friendly, being off balance sheet with no need to be hedged.
Monetary Metals provides a fair rate of return to both investors and businesses by conducting a competitive auction. Each investor decides how much gold to offer, and the minimum interest rate. The rate-setting auction phase finds the rate that will raise enough metal for the total business need, 4.5% in this lease. This graph shows the offers, and 250% oversubscription. The second phase, the call for gold, was over 400% oversubscribed.
“Quantum Metal is the biggest gold bullion distributor in Malaysia. It has a need for a considerable amount of gold,” said Keith Weiner, CEO of Monetary Metals. He added, “This deal is the first tranche.”
“Pending an imminent listing, we sought the help of Monetary Metals, as finance partners, to procure our gold lease requirements. Monetary Metals were very quick to assist and understood our business,” said De Wet Combrink, CEO of Quantum Metal.
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.
Quantum Metal (Sdn) Bhd is a privately owned company that supplies gold via the Malaysian retail banks, along with other innovative products. The company has experienced significant growth and continues to expand its client’ base.