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Monetary Metals Leases Silver to Money Metals Exchange

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

Silver Offers for 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.

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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.
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