The rich are 'renting' out their idle gold bars for income as prices remain at historic highs
www.cnbc.com
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.
  • moody@lemmings.world
    3·
    1 day ago

    Basically the borrowers are using gold-to-gold loans instead of cash loans to buy gold to avoid problems like price fluctuations.

    They’re using the gold for jewelry making or industrial processes, and then returning different gold with interest paid back in gold.

    So the lenders are lending out gold, and getting back more gold as interest with no money changing hands.

    • رضا@lemmy.worldEnglish
      2·
      23 hours ago

      my unpopular opinion was that this is very near sound money in islam (gold or silver) until I saw the interest part which is forbidden in islam.