Are P2P loans similar to bullion leasing or metals leasing?

Our P2P loans have nothing to do with bullion leasing or metals leasing. Bullion leasing or metals leasing is a practice whereby an institution leases the bullion or metals they are storing on behalf of customers to third parties for additional income. This is legal, for operators of unallocated or allocated storage systems as, in such systems, the storage customer does not have legal title ownership of their metals. Customers will typically receive an "IOU" document stating that something is owed to them but in reality, it will be recorded as liability under the operators balance sheet.

At Silver Bullion, it is impossible to do such bullion leasing and metals leasing because we always transfer legal title ownership of the metals to customers. We do this by packing the metals into uniquely serialized parcels whose ownership is then transferred through a sale invoice.

The invoice is an official document, under Singapore Law, that document the ownership of specific serialized parcels was transferred to the new party. The metals will then be removed from our balance sheet which makes bullion leasing and metals leasing impossible as it requires ownership.