Our Bullion Bank trading activities include market-making in the OTC wholesale gold markets in spot (immediate delivery), forward (future delivery) and option products, as well as in trading gold futures on futures exchanges. Trading also extends to participating directly in LBMA Gold auctions. Selling gold for liquidity requirements is a service that will be needed from time to time. Due to the quantum of gold intended for custody, it is likely that substantial savings can be achieved through establishing a dedicated business unit for the selling of gold at international mid market rates/fixed rates.

Purchase gold that meets the LBMA standard, which is 9999 hallmarked bars and coins. The Perth Mint has a long-standing relationship with Quantum Metal, and Perth Mint Bullion is our preffered bullion alternative. We also have bullion from a number of other reputable suppliers. The LBMA places a premium on maintaining its standards, which includes the accreditation of new refiners and the retesting of listed refiners on a regular basis.

• QM guarantees to buy back gold bullion purchased from us
• Buybacks can be made from precious metals held by the customer or precious metals vaulted with us
• QM may buy good delivery gold bullion bars (in mint condition)
• In person buybacks can be made at our Melbourne office
• The value of the Buyback is based on the metal spot price at the time of sale minus a premium (based on the form of metal). Premiums may vary from time to time at Quantum Metal’s sole discretion
• If the metal presented for Buyback is not sealed, LBMA approved bullion ingots, the weight and purity of the metals may need to be verified prior to full payment. Acceptance of such metals is at Quantum Metal’s sole discretion
• Payment premiums/discounts are subject to change without notice
• QM does not Buyback jewellery or scrap metal

The gold lease rate (GLR) is the cost of borrowing gold. The GLR is applied as the lending rate, also referred to as lease transactions. We can potentially provide gold leasing to businesses (e.g. jewellery manufacturers, mining companies, market makers) and earn interest on such transactions.

This is where gold as collateral is utilised to enable the borrowing of funds to unlock additional liquidity. The interest rate on a U.S. dollar loan is secured by gold as the collateral. This is called the gold forward offered rate (GOFO). This will involve working closely with an Australian LBMA member in order to facilitate this product stream. Note: there are 7 accredited LBMA members within Australia.

Bullion banks provide a number of services for mining companies, such as providing financing to mining companies with repayment to come from future gold production. Bullion bank services include: entering into long-term purchase contracts with gold mines to buy their mining output, financing projects in the business of gold mining, structuring hedging programs and managing price movement risk using spot, forward, and options contracts.

Gold Loans
We offer industry-leading Gold Loan interest rates with flexible terms. Gold loans are subject to normal due diligence and collateral requirements.

Mine Finance Solutions
Quantum Metal Bullion offers a variety of services to mining companies. QMB has also entered into long-term purchase contracts with gold mines to purchase their mining output and offer financing solutions.

Hedging and Risk Management
Quantum Metal Bullion is able to assist mining companies with managing and attaining more accurate cashflow forecasts from mining operations via the utilisation of hedging strategies. This is done by locking in the future price on both buy and sell orders of gold. In doing so, mines are able to ensure they have sufficient budgeted operating expenditure to mitigate against market volatility.

The tokenisation of gold allows the physical metal to become divisible into fractional digital equivalents. This allows the ability to split 10 ounce gold bars into 1 ounce equivalent tokens. Digitised tokens are easily transferable and trade instantly without counterparty risk as ownership is settled through the transfer of the gold backed token. The tokenised equivalent of the gold is guaranteed by the physical gold equivalent of the token amount vaulted. The token can be redeemed and the physical gold collected.

Quantum Metal provides a variety of storage alternatives to assist customers to protect their investment in bullion. We provide premium private storage boxes and individually tailored secure storage within our vaults at the highest level of security via our trusted partners, including Brinks.

We offer Allocated, Pool Allocated, and Unallocated vaulting programs, each offering different combinations of cost and accessibility. Vaulting is conducted in one or more secure locations that are only made known to Allocated Account customers as required.

Vaulting reports are provided on a quarterly basis. Real-time online reporting is available for some storage options.