Precious Metals

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Kilo Capital is a customer-centric bullion bank and precious metal merchant. We support companies that use gold, silver, and PGM metals with tailor made financing and hedging solutions. The traditional tools of bullion banking - gold leasing, inventory finance, and secured loans are core offerings. Bespoke precious metal hedging programs and physical supply have always formed the core of our foundational services.

We first work to understand what factors are most important to your precious metal financing. To achieve this, we collaborate with you to understand issues like whether you want to be exposed to metal prices, or hedge out price risk. What is the desired balance sheet treatment for the metal and related financing? Where is the metal located (e.g. in inventory, at suppliers, in a vault) and what is it used for (e.g. inventory, fixed assets, investment)? What form is the metal in (e.g. jewelry, bullion, certified coins, e-scrap)?

Armed with this information we work with you to structure the right combination of financing tools for your specific situation. While not an exhaustive list, the following are some of the core financing tools we use to help companies get the outcome they are looking for.

PRECIOUS METALS WE FINANCE

  • Gold (bar, .99999 gold grain, coins & investor products, scrap, casting grain & others)
  • Silver (bars and grain in both .999 and .9999 fineness, bar, scrap, investor products & more)
  • Platinum ingot, sponge & scrap
  • Palladium ingot, sponge & scrap
  • Rhodium ingot, sponge, and scrap
  • Iridium and ruthenium sponge
  • Coins, bars, and bullion products
  • Pool balances at select refiners and industrial fabricators

INDUSTRIES WE SERVE

  • Industrial manufacturing
  • Coin and bullion
  • Jewelry
  • Mill products
  • e-scrap
  • Electrical contacts and components
  • Metal refineries
  • Private equity sponsors
  • Oil and petrochemical refiners
  • Scrap recyclers
  • Equipment vendors
  • Fiberglass
  • MEMs and thin film
  • Catalysts
  • Mining (equipment finance and metal trading only)

Financing Solutions



Precious metal leasing

Gold leasing addresses the need to finance metal assets and also protects your profit margins from volatile price movements. By leasing precious metal you are effectively renting it from us. While leasing the metal, you can process it into finished goods, refine it into deliverable form, or whatever suits your business model.

We offer lease advances through physical delivery to you or your suppliers, metal transfers, and sale-leaseback trades. Our trading desk is always there to facilitate purchases and sales under your lease line so you can keep your lease balance aligned with your inventory levels.


Select inventory finance

Select inventory finance (SIF) is a highly efficient tool for financing your raw materials and finished goods containing gold, silver, or PGM. With an ability to finance up to 100% of the metal content of this inventory, SIF is a powerful financing instrument. Like leasing, select inventory finance addresses your financing need and also transfers the metal price risk to us.


Secured loans

Borrowing money against your gold, silver, or PGM is not a service you will find at many traditional banks. For those few traditional banks that do lend against precious metals, terms and advance rates are often unappealing. Conversely, here at Kilo Capital we are precious metal focused private credit lenders. Our deep knowledge of precious metal finance translates into sensible loan conditions and high advance rates.


Prepaid forwards and scrap purchase agreements

Scrap purchase agreements allow e-scrap, auto catalyst, and other scrap aggregators to lock in the metal price as they acquire material and get paid long before the final metal processing is complete. This type of financing is particularly helpful for businesses dealing in lower grade scrap given the longer processing times. These structures can work well alongside a company’s bank credit lines or other financing types offered by Kilo.


Equipment financing

Companies in precious metal intensive industries often have significant equipment needs. Some banks and lenders have negative preconceptions about precious commodity intensive businesses, making it difficult for these companies to secure equipment financing on the most favorable terms. Equally, the highly specialized nature of the equipment can sometimes add to this challenge. With Kilo’s deep knowledge of commodity intensive industries, we can often present a competitive and tailored equipment financing package.

Supply & Pricing Solutions



Owned Inventory

Use Kilo’s balance sheet for aging product or to stockpile ahead of seasonal demand.


Price Locks

Outsource your Treasury functions to Kilo by locking in the forward price for a set quantity of commodity for an estimated time period. Give your procurement team more options over deciding when to lock in prices and when to adjust commodity surcharges.


Raw material supply & procurement management

You dictate the specs and supplier; we ship product to your facility. You decide restocking level to ensure JIT inventory access. Lock in price for set periods and volumes, or buy on a spot basis.




Trading and Hedging Activities

  • Spot
  • Forwards
  • Averaging & QP trades
  • Fixed price physical supply contracts
  • Variable price physical supply contracts
  • Scrap purchase agreements
  • Prepaid forwards

LET'S EXPLORE YOUR COMMODITY FINANCE QUESTIONS.

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Disclaimer: Kilo Fund Management is Commodity Pool Operator duly registered with the National Futures Association. This page is being provided for informational purposes only. Kilo Fund Management is not currently accepting additional investors for its managed funds. This information is not a solicitation to invest.