Governments: Gold Financing, Simplified™

Sovereign governments with gold mining activity (or production of other commodities) in their jurisdiction often receive a royalty or severance tax. Monetary Metals® can help sovereigns issue a gold bond to start the process of getting out of debt, strengthen the fiscal position, reduce risk and volatility, offer the people a better savings vehicle, attract capital from all over the world, and take a leadership position in the new monetary system that will emerge.

A gold bond is similar to a conventional bond, except that the interest and principal payments and the face value are denominated in ounces of gold. By requesting mining companies to pay their royalty/severance in gold, rather than dollars, you can issue a gold bond against this stream of gold “cash” flows.

While novel, the idea of a gold bond is not theoretical, with Monetary Metals’ CEO Keith Weiner being a member of the Arizona House of Representatives Ad Hoc Committee on Gold Bonds, to whom he presented the idea of a sovereign gold bond. You can read the committee’s report here.

To learn more about Unlocking the Productivity of Gold™, please call one of our sales team at +1 (646) 653-9729 or fill in our inquiry form on the right to find out about Monetary Metals® Gold Financing, Simplified™.