A soaring gold market is turning stashed bullion into an income source, as investors turn to leasing arrangements that supply jewelers and fabricators hungry for metal.
The explanation is literally about a third of the linked article.
Gold leasing works much like a loan, except the asset is in ounces, not cash. Though the structures differ slightly, the underlying logic is the same: investors supply gold to a leasing platform or financier, who then lends that metal to a business. For a jeweler, refiner or fabricator who needs gold to make jewelry or components, they don’t have to borrow cash and risk price swings while holding it. They can then sell their finished products at the current gold price. The borrower then pays a lease rate — a form of interest in gold — and at the end of the term, either returns an equivalent quantity of metal or rolls the lease forward.
The explanation is literally about a third of the linked article.
I know I read it. But if they use it to make jewelry and they sell it that’s not really renting now is it?