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What is a lease rate?
A lease rate is the amount of money paid over a specified period for the rental of an asset, such as real property or an automobile. The lease rate—the amount the lessor earns from allowing someone else to use their property—compensates them for not being able to use that property during the term of the lease.
What is a gold lease Rate?
The gold lease rate (GLR) is the compensation the lender of gold receives for entering a Gold lease. Contrary to popular opinion gold bullion may be lent and borrowed, just like any other asset or currency. Therefore, gold may have a yield and may bear interest. At the end of the lease, the lender is repaid the gold + accrued interest. A gold lease accrues interest monthly. From the perspective of an investor, the total return is a combination of the percentage change (+/-) in the gold price over the term, + the interest accrued from the lease.
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