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Billions of dollars worth of Gold, Silver, Platinum and Palladium are
borrowed or lent on a daily basis in the Precious Metals Lease Market in the
same manner as any other currency through negotiated Metal Loans.
Historically, bullion banks, precious metals dealers, national central banks, and
international mining and refining concerns borrow or lend bullion
in exchange for the payment of a lease fee representing an annualized
percentage of value of the underlying metal. Transaction sizes
of less than $5 Million were rare and limited access to this market between national
central banks, large bullion banks, primary and secondary producers,
and industrial consumers.
Alliance has developed a unique program, the Alliance
Deposit Lease Program, that allows holders of precious metals unprecedented access
to the Precious Metals Lease Market.
Today, holders of as little a 100 troy ounces of gold, 50 troy ounces of Platinum
and 5,000 troy ounces of silver can generate income from
their precious metals holdings while at the same time eliminating all
costs associated with storing their precious metals holding in a
secure depository. Holders of precious metals will receive prevailing
Deposit Lease Rates by entering into a Deposit Lease Agreement with Alliance.
Deposit Lease Rates are quoted as an annual percentage of the face value
of the underlying metal.
| 90 Day Platinum Deposit Lease |
Metal Deposited:
Reference Price:
Face Value:
Annual Lease Rate:
Annual Lease Fee:
Lease Term:
Daily Lease Fee:
Lease Fee Term:
|
1,000 Troy Ounces Platinum
$600/ Troy Ounce
$600,000.00
6%
$36,000/year
90 days
$100/Day
$9,000 over 90 days
|
<< Income To Depositor |
Conversely, by entering into a Collateralized Precious Metals Lease, and posting the required collateral
deposit, consumers can acquire the use of a specific precious metal for a given period,
generally at rates that are significantly below dollar financing rates.
Precious Metals Lease Rates represent pure supply and demand. They reflect the availability of given
precious metals, for a given term, regardless of other economic factors. Therefore, if there is an
over supply of metal, Lease Rates decline and if there is a shortage of metal Lease Rates increase.
Historically, Overnight Rates have been as high as 100% and as low as 0%.
| Sample Normal Gold Lease Rate Yield Curve |
| # Days |
Gold Borrow Rate |
Gold Lending Rate |
1
30
60
90
180
365
|
0.50%
1.00%
1.10%
1.25%
1.50%
1.75%
|
2.25%
2.50%
2.75%
3.00%
3.10%
3.25%
|
Even a nominal Lease Rate return of a fraction of one percent of value can translate into
an annual income of over 1% of value due to the elimination of all Storage Fees.
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