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™. 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.