Monetary Metals has successfully funded a gold lease of **15,515 ounces**, valued at approximately **$80 million**, to **Jawhara Jewellers**, a prominent jewelry retailer based in the United Arab Emirates. This significant agreement marks Jawhara’s shift in its gold financing strategy from traditional bank financing to a more innovative approach provided by Monetary Metals.
The leased gold will be utilized by Jawhara to bolster its inventory without the complications often associated with bank financing. Traditional financing methods can impose challenges such as hedging risks, which can lead to margin calls during periods of market volatility. The current fluctuations in precious metal prices have heightened these risks, making it increasingly difficult for jewelers to manage working capital.
In a statement, **Keith Weiner**, Founder and CEO of Monetary Metals, highlighted the advantages of their financing model. He stated, “Bank financing forces jewelers into a vicious cycle of borrowing dollars, hedging gold price risk, and managing margin exposure. Our gold lease is fundamentally different. It allows jewelers to finance gold inventory in gold, removing the need to hedge and eliminating the threat of margin calls.”
The **Monetary Metals True Gold Lease®** offers a unique solution by aligning gold assets with gold liabilities. This alignment simplifies cash management for jewelers, allowing them to focus on their core business without the complications of currency fluctuations. As **Tawhid Abdullah**, CEO of Jawhara Jewellers, explained, “By leasing gold instead of borrowing dollars, we avoid complexity and risk. The result is a smoother, more predictable, and more cost-effective way to finance our inventory.”
This agreement not only enhances Jawhara’s operational capabilities but also reflects a broader trend towards innovative financing solutions in the jewelry industry. Conventional bank financing often constrains even profitable businesses through stringent collateral requirements and sudden margin calls resulting from volatile market conditions.
The partnership further expands the growing portfolio of Monetary Metals, which aims to transform gold from a static asset into a productive financial resource. Since its inception, the company has focused on enabling businesses to unlock the full potential of gold, allowing it to serve as a yield-bearing financial asset.
For more information about **Monetary Metals** and its financing solutions, visit their website at monetary-metals.com.
About Monetary Metals: Monetary Metals® is dedicated to unlocking the productivity of gold by offering a yield on gold, paid in gold, to investors and simplifying gold financing for businesses, including mints, miners, refiners, and jewelers. Since its founding in 2016, the company has been providing opportunities for individuals and institutions to earn a yield in gold and silver regularly through its Gold Yield Marketplace®.
For press inquiries, please contact **Dickson Buchanan Jr.**, Vice President of Marketing, at [email protected] or call **646-653-9729**.
