Questions about refinery financing

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apankhurst

New member
Joined
Jun 8, 2018
Messages
2
Hey y'all,

I'm doing a project on the precious metals refining business and I'm trying to learn how these companies are financed. I've spent a lot of time online searching for information on this subject, but haven't been able to find much. I was wondering if anyone has insight into how refineries actually finance their operations?
 
I’m not sure I can fully answer your question but I know from first hand experience that the big dealers keep track of what they are buying and selling from and to customers and any excess or shortage is either sold or purchased, they rarely risk the market and just take their expected profit. They also use gold loans from major banks so the stock is a lot cheaper to finance, or they used to, not too sure if the deals have changed these days.
 
Thanks, I've done some reading on gold loans and am trying to find more on them, but the mechanics of them aren't exactly clear. I think I have a basic understanding of how they function, but I'm still struggling to find information on their specific mechanics.
 
If I remember correctly the bank of Nova Scotia was heavily involved at one time try talking to them.
 
http://www.scotiamocatta.com

Big refining is big banking. Bullion loans with forward delivery are usually cheap relative to other loans, even if collateralized (let’s just say gold and real estate are great collateral!!)

Lou
 
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