Your business works with gold. Make that gold work for you.
Gold is essential inventory for a jewelry business. But purchasing it outright consumes working capital that could otherwise support production, distribution and growth.
Monetary Metals provides gold-denominated financing to qualified jewelry businesses. You can access the gold you need while eliminating the inconvenience of borrowing dollars, purchasing gold and managing a separate hedging strategy.
Borrowing dollars to buy gold introduces risk and complexity
A jewelry business may look to finance gold inventory with cash, equity capital or a conventional bank loan. Borrowing in dollars to purchase gold creates a disparity between the financing and the asset. You must first secure dollar funding, convert it into gold and then manage the resulting exposure to changes in the gold price. The latter may require an ongoing hedging strategy, along with collateral, reporting and risk controls tied to dollar values. Each additional step adds cost, complexity and operational demands.
Financing in gold aligns the loan with the asset
Gold financing matches the loan to the asset.
Jewelers borrow and/or lease gold, not dollars—eliminating the currency-to-metal mismatch, along with the hedging costs, complexity, and operational drag that come with it.
Financing built around your operations removes the need for hedging
Your high-value inventory moves from raw material through production, finished goods, distribution and sale. And your inventory requirements may change with seasonality, expansion, customer demand and movements in the gold price.
Rather than borrowing dollars to acquire a changing quantity of metal, gold financing ensures that you receive the gold you need while managing your obligation in that same metal. This helps you preserve working capital for payroll, equipment, stores, distribution, marketing and other parts of your business.
Monetary Metals evaluates how your company uses the gold, where you hold your inventory and what controls are in place. This enables us to structure your financing around your operating requirements, rather than as a generic dollar loan.
Qualified retailers may use gold financing to support inventory across stores, brands and locations while preserving working capital for other business priorities.
Gold financing can support raw materials, work in progress and finished goods, empowering manufacturers to maintain production without purchasing their full gold requirement with cash or dollar debt.
Access to gold inventory enables wholesalers and distributors to maintain product availability, meet customer demand and support expansion into new products or markets.
Financing with inventory visibility lifts the reporting burden
To help finance high-value, portable inventory, lessors must be confident in where their gold is held, how it moves and whether physical inventory reconciles with business records.
TJS, a wholly-owned subsidiary of Monetary Metals & Co., provides jewelry inventory technology and asset assurance designed for high-value operations. Depending on the business and financing structure, this may include:
- Inventory tracking
- RFID technology
- Monitoring
- Operating procedures
- Audits
- Reconciliation
- Exception reporting
By combining financing with inventory visibility and asset assurance, Monetary Metals empowers qualified jewelry businesses to put gold to productive use with stronger controls around the financed asset.
Let’s get started!
Tell us how you use gold and what you’re trying to accomplish.
