Many wonder what other benefits the GSC Collateral Loan Program will have other than the usual that is already known, e.g. short term cash flow. Here we have a perfect case study about how you can keep your physical precious metals but yet still unlock liquidity from it for other available opportunities or need.
Amy invested in Silver after she had done her own research and believe that silver price will rise in the long run. She bought 1000 oz worth of 100 oz Silver bars that cost $37,500 last week but she believes that equities now are a good time to get into.
This is where the GSC Collateral Loan program can assist and help Amy to have both in her portfolio. Assuming the Silver spot bid price is at $34/oz and the loan-to-value of silver is at 75%, let’s look at a simple scenario on how this program works.
Amy starts by buying 1 pc of the 100 oz silver bar and put it into the collateral loan program. She will get $34/oz x 100 oz x 75% = $2550 from collateralizing the bar. If she collateralises 10 of her 100 oz Silver bars, she will be able to get $25,500 from them. She can then use the short term liquidity from her bars for other investment opportunities such as the equities she is looking at or even buy into other precious metals such as Gold if she believes that we are in a commodities super cycle. This is akin to what many are more familiar with, mortgaging their homes for liquidity for investment opportunities or to tide through tough times, you can do the same for Precious Metals and jewellery too!
Feel free to contact us if you are interested!
Maya
I’ll like to know more about GSC collateral program.
Hi Felice, I have dropped you an email on 11th August. Did you receive it? Alternatively, you can reach me at +65 8893 9255, we can discuss this further over the phone. Look forward to speaking with you!