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Precious Metals
Lease Market


Precious Metals Deposit Lease Program (PMdLP)

Collateral Financing

 



Bullion Banking

Precious Metals Lease Market

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 as 10 troy ounces of Gold, 10 troy ounces of Platinum and 500 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.

Sample Deposit Lease (Alliance Borrows):

90 Day Gold Deposit Lease
Metal Deposited:
Reference Price:
Face Value:
Annual Lease Rate:
Annual Lease Fee:
Lease Term:
100 Troy Ounces Gold
$1,600 / Troy Ounce
$160,000.00
3.25%
$5,200.00 / year
90 days
 
Daily Lease Fee:
Lease Fee Term:
$14.24 / Day
$1,281.60 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%.

Click here for Live Deposit Lease Quotes.

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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