Gold Leasing Explained

Gold leasing is the practice of leasing gold in exchange for payment. In a gold lease, an individual or company which owns gold loans the gold out to a company which needs gold in exchange for interest (lease rates).

The terms and conditions of the lease, including the interest rate, are laid out in a leasing agreement. Gold leasing provides a way for entities which hold gold to earn yields from their gold assets while retaining ownership of their precious metal.

Gold leasing is primarily practiced between central banks and bullion banks. However, there are some retail banks and gold leasing service providers which make their services available to private investors who want to earn yields on gold investments. Service providers may also lease other precious metals.

See also:
Bullion banking definition
Bitcoin savings accounts explained