Monetary Metals® today announced the funding of a 15,515-ounce gold lease to Jawhara Jewellers (about $80 million). The transaction is the result of Jawhara's decision to transition its gold financing relationship away from a bank to Monetary Metals.

Jawhara, a leading Emirati jewelry retailer and manufacturer, will use the leased gold to fund inventory, while avoiding the problems inherent in bank financing of gold.

One such problem is hedging. Hedging always incurs the risk of margin calls, and this problem intensifies during volatile periods, such as those currently affecting precious metals.

Another problem is top-ups. These occur whenever the bank's credit line is up for renewal. The limit is set in dollars, so if the gold price rises then the same credit line does not finance as much inventory as before. The difference must be made up by the jeweler, by committing more capital.

The Monetary Metals True Gold Lease® eliminates hedging, margin calls, and top-ups. The lease matches the gold asset with a gold liability, creating a natural alignment that simplifies financing and cash management in the jewelry business.

"Bank financing forces jewelers into a vicious cycle of borrowing dollars, hedging gold price risk, and managing margin exposure," said Keith Weiner, Founder and CEO of Monetary Metals. "That structure introduces unnecessary complexity and capital strain. 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. It's a more stable and economically sound model for the industry."

Recent volatility in precious metals has intensified the operational and liquidity pressures that jewelers face under conventional bank financing. Even profitable businesses can find working capital constrained by collateral requirements and sudden margin calls triggered by violent price swings.

Tawhid Abdullah, CEO of Jawhara Jewellers, commented, "Monetary Metals provides a superior alternative. 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 lease further expands Monetary Metals' growing portfolio of gold leases to jewelry manufacturers and retailers worldwide, reinforcing its mission to unlock the productivity of gold: transitioning gold from a static, storage-only asset to a productive, yield-bearing financial asset used by investors and businesses worldwide.

Courtesy : PR Newswire