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Asset Loans ME Precious Metals are pleased to advance a margin loan to suitable clients who can present any marginable security or other asset which has a current and recognisable market value, e.g. gold.

The fundamental questions that would be asked for a gold loan, are as follows:-

1. What is the nature of the asset being proposed as security against a margin loan?

2. Does the loan applicant have full legal title and custody over the proposed asset?

3. Does the loan applicants’ bank recognise the ownership of the said asset by the applicant?

If the above questions can be answered in the affirmative, then a margin loan will be considered.

For clients who have Gold Bullion as their proposed security, essentially the

same questions apply. ME Precious Metals would sign a margin loan contract with the legal owner of the gold. The ownership would have to be evidenced via the production of a Gold Deposit Receipt (GDR). This is issued to the holder of bullion in any bank. Secondly, the loan applicant would have to provide reasonable evidence to show that there were no encumbrances upon the gold by the holding/depositary bank or any other third party. The applicant would also be required to issue a simple corporate request to ME Precious metals, requesting that margin loan facilities be arranged.

Subject to the above, ME Precious Metals will issue an indicative term sheet to the loan applicant. Upon acceptance of the terms of the loan by the applicant, a margin loan contract would be issued and signed by the loan applicant and ME Precious Metals. The gold bullion, in the form of a certificate issued by the holding bank, would be transferred to the account of ME Precious Metals.

After a period not exceeding 72 business hours, the agreed loan funds would be transferred to the bank account nominated by the loan applicant. Subject to the applicant fulfilling all requirements of the contract vis-à-vis the interest payments on the loan, any margin calls that may or may not be made and the repayment at loan term of the loan advanced originally, then at the end of the loan term the asset pledged by the applicant will be returned to the applicant and the lender, ME Precious Metals will relinquish all claims to the asset. The full and unconditional transfer of the gold or other asset propose as marginable security is an absolute requirement since the lender, ME Precious Metals, need to be totally sure that they will be able to realise their advanced funds should the loan applicant default on the loan.

ME Precious Metals have confirmed that they are prepared to advance a loan to market value rate of 80%-85%. The interest rate that would apply would be US Prime Rate on the day of contract. Furthermore, in the interests of completing this valuable deal, ME Precious Metals have also confirmed that they would advance the loan to your client in Euros, the currency risk vis US Dollar versus Euro would be borne by ME Precious Metals. Furthermore, the chances of a margin call are currently very low on gold loans, and it would be possible for your client to recoup the 15-20% differential within a matter of weeks in order to fulfill their current funding requirements.

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