• 13 Posts
  • 1.6K Comments
Joined 2 years ago
cake
Cake day: June 9th, 2023

help-circle



















  • For a jeweler, refiner or fabricator who needs gold to make jewelry or components, they don’t have to borrow cash and risk price swings while holding it. They can then sell their finished products at the current gold price. The borrower then pays a lease rate — a form of interest in gold — and at the end of the term, either returns an equivalent quantity of metal or rolls the lease forward. For borrowers, the appeal lies in simplicity and accounting clarity. “Gold leasing solves two problems,” said CEO of Kilo Capital, Wade Brennan. “It gives them the funding they need and removes the price risk. If they bought gold with a bank loan, they’d have to hedge, or they’d be exposed to the gold price.

    Clipped the relevant part of the article so you don’t have to go trough the trouble of clicking the link and reading the thing.