Download Our Presentation To Learn More
Fill out the form to the right to receive a presentation of our Gold Fixed Income program with more information. Additionally, we’ll send you a free copy of our white paper, The Case For Gold Yield In Investment Portfolios, which has data going back to 1971 showing how gold impacts a diversified portfolio of assets, and how gold with yield is even better.
Schedule a Call with a Relationship Manager
Our team of knowledgeable Relationship Managers would be happy to hop on a call to answer your questions, discuss further, and offer a no-pressure, non-hassle introductory call to see if earning a yield on gold is a good fit for you.
What Clients Say About Monetary Metals
“I can earn 0.55% interest in dollars in a one-year CD, or I can earn a constant 2.25% interest in gold with Monetary Metals – without fluctuations. I’m choosing Monetary Metals!”
“There’s nothing better than seeing your account accrue interest each month.”
“I couldn’t be happier with my experience with Monetary-Metals…My only regret is that I didn’t become a client sooner!”
“I love earning more gold and silver on my gold and silver holdings!”
“It really works! I was pleasantly surprised to see that I’ve earned over 2 ounces of gold interest since I started out.”
Frequently Asked Questions
How is Monetary Metals able to pay interest on gold and silver?
Our ability to pay interest on gold and silver deposits comes from connecting investors with businesses that use gold productively. We provide them Gold Financing, Simplified™.
What kind of businesses? Jewelers, mints, precious metals dealers, refiners, recyclers, mining companies. Basically any company that has physical gold or silver as inventory or work-in-progress.
They happily pay a fee to lease the gold & silver inventory required in their business. Our lease financing eliminates the price risk present in traditional bank financing, and protects their margins (since they no longer have to hedge).
Consider a simple example. Acme Inc. borrows $1,000,000 to buy $1,000,000 worth of gold. It makes 3% gross profit, meaning the finished goods sell for $1,030,000. However, during the manufacturing process, suppose the gold price drops 5%. The raw gold is now worth $950,000. The finished product with 3% markup is $978,500, and Acme loses $21,500.
To avoid the price risk, most gold businesses would sell (short) futures contracts. This solves the price risk problem, but it brings its own costs and risks, such as having to borrow additional cash for the margin on the futures contract and constant need to roll their short futures contracts.
Acme would benefit greatly from a gold lease. It simplifies their financing, eliminates price risk along with the need for hedging, and saves them money. They just need some gold, and they don’t want so many moving parts. In other words, possession of the gold without the problems of owning it. Gold Financing, Simplified™.
Monetary Metals® facilitates the matching of investors and businesses, with a fixed fee. Our vision is to create a transparent and open market, the Gold Yield Marketplace™.
Monetary Metals® performs its due diligence before offering a gold lease to investors. We work exclusively with companies that use gold productively–and have physical gold. We will not offer a gold lease that could be used for short selling or other derivative transactions. We work out the best type of lease to finance the business, and put together the terms of the deal.
We present the terms of the lease and the result of our due diligence to investors for review. Then it’s up to you. If you want to participate, you make an offer on the lease with your metal. You have the right, but not the obligation, to participate. Once your offer is accepted, your gold will start generating gold interest on a monthly or quarterly basis, deposited directly into your Monetary Metals® account.
What can I expect to earn on my gold? What’s the interest rate?
Historically, Monetary Metals’ leases have paid between 2.0 – 4.5% net annual to investors. The blended (or average) rate in our lease program currently hovers a little under 3%. In other words, 100oz invested in a 3%, one year lease, will yield 103oz at the end of term.
Can I earn interest on silver too?
Yes. We offer silver leases in addition to gold leases. Clients can open an account, hold a silver balance, and earn interest in silver in that account, in addition to holding and earning on gold.
Some clients have gold as an investment and silver as an investment. Take a look at a client statement showing both (with growing ounces!) here.
When and how is interest paid?
Most of our leases pay interest monthly, but some pay quarterly. This is disclosed to investors prior to committing to a deal.
Generally, interest is paid in kind (silver interest for silver leases, gold interest for gold leases) and is deposited directly into the client’s account. The interest payments are made in allocated gold and silver, which is vaulted and insured through our vault partners.
Clients receive monthly statements showing how much gold or silver they have earned over the previous period, year to date, and since inception.
You can view an actual client statement, here.
What is required to open an account?
To open an account, you’ll need to:
- provide a photo ID if you are a US citizen; for non-US citizens, two copies of ID may be required
- complete a W-9 (or a W8BEN or W8BEN-E for foreign account holders)
- complete the account agreement and precious metals lease agreement
- fund the account with bullion or cash
How do I withdraw my metal from my account?
Clients can initiate a partial or full withdrawal request at any time by completing a one-page form. Metal can be sold for cash, redeemed for physical delivery, or shipped to a different storage account.
If the price of gold or silver goes up during the lease, do I still get the price gain?
Yes. You own the metal, whether it’s on lease or not.
If the dollar price of gold doubles, then the dollar value of your gold doubles as well. If the dollar price of gold falls, then the dollar value of your gold in the lease falls.
Monetary Metals is focused on one thing – enabling investors to grow their total ounces of gold. This provides a unique way for investors to express a long gold investment thesis, while earning income on that position for the duration of the investment.
Does Monetary Metals have insurance on my metal?
We require the depositories where we store the metals to have insurance, and also of each lessee who leases the metals.
As part of our due diligence process, we require the lessee to have Monetary Metals listed as loss payee on the insurance certificate.
We also have an additional policy through a leading global insurer based out of the UK that provides additional insurance coverage for our gold and silver leases.
Can a company sell or hypothecate my metal in a lease?
The lease is to finance a company’s physical inventory. And although inventory is purchased and sold, the lessee must buy the replacement gold or silver first, to ensure that the full amount of gold on a Monetary Metals lease is present & secure at all times.
For example, there is a 1,000 oz gold lease and the dealer has 1,000 oz of coins in his inventory. His customer orders 50 oz of coins. The dealer buys 50 gold Eagles first, bringing total inventory up to 1,050 oz. Then he can fill the customer order and sell the coins. The balance of gold in inventory never falls below 1,000 oz.