Goldback Leases
Goldback leases pay returns in gold so that your entire investment is still in precious metals. Other forms of gold ownership usually come with vaulting fees and insurance premiums, however, Goldback leases come with regular returns.
The Goldback lease program is designed to give excellent and safe returns in an environment where everyone is being forced to compete with extremely cheap credit. The main investment is actually held in gold, the returns are also paid in gold on a monthly basis. Since inception this program has grown from about $1.5 million in 2019 to $7.5 million in mid 2021. It is generally open for additional leases. This program protects Goldback Inc. from becoming reliant on cheap credit from banks while also allowing people to put their gold to work for them in a secure and meaningful way.
Before Goldbacks were first produced in 2019, we had a challenge. We learned that it would cost over one and a half million dollars to make all of the inventory necessary to lock in favorable production rates with our production company, in order to make the Goldback affordable. Once sold, this same one and a half million dollars worth of Goldbacks would then need to be reordered so that we could continue providing Goldbacks. We would never be able to spend this money on any other type of development. As Goldbacks became more popular we would need even more circulating inventory.
As a new company, Goldback Inc. didn’t have that kind of money sitting around. Our solution was to work with some of our partners to borrow the gold in the form of gold leases. In exchange for the loan, we agreed to pay a 2.5% annual return in gold. All of the leases are denominated in Goldbacks. The maximum return has since moved up to 3.5%.
Goldback leases have proven to be very popular because, rather than paying vaulting fees, one could make a secure return on gold. This is attractive because the value of the loan increases as the price of gold rises. The entire lease is held in gold at all times and is insured against loss or theft. The gold is used for the creation of new Goldbacks which are then sold to retailers. Once sold, the Goldbacks are reordered again with the same money, providing a rotating inventory. As the demand for Goldbacks continues to grow and production capacity increases, we expect this program to increase in size as well. In 2021 this program will need to expand to keep up with the increased Goldback production that is coming online. For more information email us at info@goldback.com.
Leases can fund new Goldback series, subject to certain minimums. Read more about that here.