by Keith Weiner
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Scottsdale, Ariz, April 7, 2020—Monetary Metals® announced today that it has leased gold to UK-based Brite Metals. The lease enables Brite Metals to buy gold from Latin American gold miners, and sell it to European refiners.
The Latin American gold mining industry has faced difficulties in recent years. Several refiners have stopped buying their output, amidst a growing anti-money laundering compliance burden.
Brite Metals develops a platform to satisfy OECD/LBMA compliance guidelines, and efficiently make the data visible to the entire supply chain. This allows the gold to come to bullion buyers via market-making refiners, and hence the miners can be paid fairly for the value of the gold they produce.
The initial lease tranche was raised off-market, and the interest rate is not published yet.
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 by earning a return, rather than paying storage costs. Metal-using businesses benefit, as the lease tends to be their lowest-cost capital. Leasing is more user-friendly, with no need for hedges, because it is not on the balance sheet. The gold remains the property of the investors, so it would not go to the creditors of the lessee (or Monetary Metals), in case of a bankruptcy.
“Gold is so valuable, that no law can keep it from coming to market. What the explosion of compliance has done, is force miners in developing countries to accept lower and lower prices, with increasing profits going to smugglers and bad actors,” said Keith Weiner, CEO of Monetary Metals. He continued, “The brilliance of Brite Metals’ innovation is that it combines ethical buying of the gold with all necessary compliance.”
“Monetary Metals’ gold lease enables us to make money by doing good,” said Mike Greenacre, CEO of Brite Metals.
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