Sunday , May 26 2019
Home / SNB & CHF / Monetary Metals Leases Silver to Money Metals Exchange

Monetary Metals Leases Silver to Money Metals Exchange

Summary:
Scottsdale, Ariz, May 3, 2019—Monetary Metals® announces that it has leased silver to Money Metals Exchange® to support the growth of its business of selling gold and silver at retail and wholesale. Investors earn 2.2% on their silver, which is held in Money Metals’ vault in the form of silver products. Monetary Metals has a disruptive model, leasing gold and silver from investors who own it and providing it to businesses who need it, typically for inventory or work-in-progress. Investors benefit, because they earn a return rather than pay storage costs on their metal. Gold- and silver-using businesses benefit, as the lease is their lowest-cost capital. And the lease is more user-friendly, with no need to be hedged

Topics:
Keith Weiner considers the following as important: , , , , , , ,

This could be interesting, too:

Charles Hugh Smith writes China’s Insurmountable Global Weakness: Its Currency

Swissinfo writes Image of Swiss banks improves among public

Charles Hugh Smith writes Technology Is Not Just Disruptive, It’s Disastrously Deflationary

Swissinfo writes OECD lowers Swiss growth forecasts for 2019-2020 

Scottsdale, Ariz, May 3, 2019—Monetary Metals® announces that it has leased silver to Money Metals Exchange® to support the growth of its business of selling gold and silver at retail and wholesale. Investors earn 2.2% on their silver, which is held in Money Metals’ vault in the form of silver products.

Monetary Metals has a disruptive model, leasing gold and silver from investors who own it and providing it to businesses who need it, typically for inventory or work-in-progress.

Investors benefit, because they earn a return rather than pay storage costs on their metal. Gold- and silver-using businesses benefit, as the lease is their lowest-cost capital. And the lease is more user-friendly, with no need to be hedged as it is off balance sheet.

Monetary Metals provides a fair rate of interest, to both investors and businesses, by conducting a competitive auction. Each investor decides how much metal 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, 2.2% in this lease. This graph shows the offers, and 250% oversubscription. The second phase, the call for metal, was 300% oversubscribed.

Silver Offers for Money Metals Exchange

Monetary Metals Leases Silver to Money Metals Exchange

- Click to enlarge

“Money Metals is very productive in working its inventory,” said Keith Weiner, CEO of Monetary Metals. He added, “It is a simple business case of adding more metal to add more sales revenue.”

“Monetary Metals has put together a very attractive lease program to help my company further expand the breadth and depth of our silver offerings—and at rates that beat most banks. Sadly, it seems most banks don’t yet grasp the high-quality nature of the inventory which precious metals dealers hold, so it is a real pleasure to do more business with those who do,” said Stefan Gleason, president of Idaho-based Money Metals Exchange.

The two companies are not affiliated, despite their similar names.


Tags: ,,,,,,
Keith Weiner
Keith Weiner is president of the Gold Standard Institute USA in Phoenix, Arizona, and CEO of the precious metals fund manager Monetary Metals. He created DiamondWare, a technology company that he sold to Nortel Networks in 2008. He writes about money, credit and gold. In March 2015 he moved his column from Forbes to SNBCHF.com

Leave a Reply

Your email address will not be published. Required fields are marked *