A precious metal leasing transaction has similarities to a loan, and as mentioned above, the terms « leasing » and loans are sometimes used interchangeably. Regardless of the commercial nomenclature used in the transaction, the detailed provisions of the treaty determine the nature and extent of the respective legal rights and obligations of the parties. Under these conditions, there were industrial users who knew that their leases were also due during this period. Because of this large short platinum cover, the price has drawn not only on the merchandise, but also on the platinum rental price. On that day, the industrial customer, who was expecting 3% to 4% for a one-year lease, was offered between 100% and 120% per year! The consumer had no choice but to return the platinum he had rented, buy it directly or accept the new price. Miguel Perez-Santalla is vice president of business development for BullionVault, the physical gold and silver exchange, founded ten years ago and now #1 provider of physical property on the Internet. Miguel is a strong advocate for small investors and a regular speaker in the industry and media, has more than 30 years of experience in the precious metals industry and has previously worked with leading U.S. coin dealers and the international refining group Heraeus. Now, for those who want to invest more than 5000 dollars in gold or silver, and are willing to keep the investment for 1 or 3 years, we can offer you a fixed return, with the payment of interest in the metal! In times of uncertainty, attention traditionally turns to gold and other precious metals. Since the onset of the COVID 19 pandemic, the price of gold has reached new heights. Repo: For a precious metal pension, the title of the metal is awarded to one party at the beginning of the transaction and the other receives cash in return. If the pension buyer is late on the second part of the transaction, the repo seller is allowed to sell the metal elsewhere to recover his loss.
The resulting credit risk is therefore limited to any change in the value of the metal during the duration of the transaction. Any risky debt may be dealt with by a separate obligation to provide additional collateral. A precious metal lending operation includes the lending and borrowing of precious metals. This type of transaction resembles a currency or an equity loan. We are aware that most precious metal investment funds, ETFs and deposits will actually charge you to store your money or gold due to logistics and insurance costs.