Monetary Metals attended the famous New Orleans Investment Conference this year to talk about how A Yield on Gold, Paid in Gold® can benefit investors.
CEO Keith Weiner gave a talk on the main stage titled How to Build and Wreck a Pension Fund in 22 Easy Steps. Click the link to watch his talk, or read the full 22 steps in written form here.
Vice President of Marketing Dickson Buchanan gave a presentation on the benefits of Gold 2.0 – How to Upgrade Your Gold with Monetary Metals to a crowded room of investors at the conference who wanted to know more about Monetary Metals and its Gold Fixed Income products. His presentation covers the history of Monetary Metals, how True Gold Leases and Gold Bonds work, and a few frameworks for how to think about Monetary Metals.
Watch the full talk below to understand the benefits of Gold 2.0 and how to upgrade your gold holdings with Monetary Metals.
Warren Buffett and Gold Critics
The Oracle of Omaha is a renowned investor and famous for his views on gold. What’s his main argument against gold? That it is not a productive asset and that it produces no yield. This was a great argument against gold as an asset… before 2016, when Monetary Metals started offering a yield on gold again. Since then clients have been earning interest on gold and silver at steady rates for six years and counting.
What is Gold 2.0 and how does it work?
Gold 2.0 is a simple idea, but revolutionary in its consequences. Gold is money, and money should earn interest! To provide a yield to investors, Monetary Metals works with businesses who use gold productively. We offer them Gold Financing, Simplified™. They are happy to pay a fee (in gold) to lease or borrow gold which they transform into valuable products and make a profit. It’s a win for gold investors, the business, and the economy.
What are True Gold Leases?
True Gold Leases offer investors a return on their gold for secured, short term opportunities with qualified businesses. You can earn between 2% and 3% on gold and silver, for a one-year term. Structured as a lease of personal property, title and ownership of the gold remains with you, and the gold remains in physical form. Monetary Metals conducts due diligence on all potential lessees, and presents investors with opportunities to lease their metal. Interest is paid monthly into your account and there is free storage and insurance. You can find more information on our True Gold Leases page.
A Gold Bond is similar to a conventional dollar bond, except that the face value is denominated in ounces of gold, and the interest and principal are paid in gold. The gold bond issuer amortizes the bond from income the same way that a dollar bond issuer does. Because of the increased risk, and longer maturities (2-3 years) Gold bonds offer higher yields than True Gold Leases. Gold bonds are only open to accredited investors.
We successfully issued the first gold bond in the US in 89 years. It had a one-year term, and investors earned 13% on their gold that was used in the loan.
Visit our Gold Bonds page to learn more.
What are some ways to think about Monetary Metals?
Monetary Metals offers exciting new ways for gold owners to think about and use their gold. Gold is now a productive and yield-generating asset. This represents a paradigm shift for many investors. In his presentation, VP of Marketing Dickson Buchanan lays out a few ways to think about how earning a gold yield could serve investors in the context of a broader investment strategy.
Gold Fixed Income vs Dollar Fixed Income
The problems with a dollar fixed income investments are numerous and deserve their own discussion. But investors can clearly see that inflation eats away at their income, not to mention that changes in interest rates can make this portion of a portfolio more volatile.
A Gold Fixed Income provides the stability of fixed income interest payments, but without the constant dollar devaluation and threat of inflation. Add to that the benefit of gold’s time-tested price appreciation, and investors stand to reap returns both in income, and in the price appreciation of gold. Gold cannot be debased or inflated away. Nor is it subject to wild swings in price by dollar-based interest rates.
In summary, gold fixed income combines the historical dollar price appreciation of gold, and with the added benefit of increasing your gold income in ounces over time.
Gold Fixed Income and other gold investments
Before Monetary Metals there were precious little options available when it came to owning gold. Either you owned metal in a vault, and had to pay storage and insurance costs or you owned it at home without the vault costs, but with more risk of theft or loss. If you wanted more of a return for risk in gold your only other option was to invest in mining equity, which is completely different than owning the physical gold itself.
The Risk-Return Spectrum in Gold
Monetary Metals’ True Gold Leases and Gold Bonds fill in the gaps on the risk-return spectrum in gold. Now gold and silver investors can choose to invest their metals in leases and bonds which offer yields on their metal, paid in more metal, without having to resort to speculative mining equity on the other end of the spectrum. For those interested to see how Monetary Metals is developing more options for investors when it comes to their gold and silver holdings, read our free white paper The Risk-Return Spectrum in Gold
A True Alternative to the Dollar – Earn an Honest Return in Honest Money
Many investors come to gold because of the problems with the dollar and the dollar-based monetary system. Often gold is touted as a solution to these problems. But buying gold is not enough. It may (or may not!) effectively shield you from a collapse in the dollar. But buying gold by itself does nothing to avert financial Armageddon. We need a way to get back to using gold, honest money, again.
And that’s what Monetary Metals is doing.
Monetary Metals is not like other gold companies. Our mission is to create the Gold Yield Marketplace and reignite gold financing, and investing. The key to gold becoming useful again—useful as money—is earning a yield. This is why Monetary Metals is on a mission to Unlock the Productivity of Gold®.
We’re building the financial plumbing to start using gold as money again. It’s an alternative to the dishonest dollar. It’s an honest return, in honest money.
If you are interested in changing the monetary system, one ounce at a time, check us out. We’d love to know what you think.
Frequently Asked Questions
Yes, we offer interest on silver, paid in silver as well.
For other questions please check out our FAQ page, watch our presentation on Gold 2.0, browse our YouTube playlist on How to Earn Interest on Gold and Silver, or simply schedule a call with one of our knowledgeable Relationship Managers to see how you can start earning a return on gold and silver today.
Additional Resources for Earning Interest on Gold
If you’d like to learn more about how to earn interest on gold with Monetary Metals, check out the following resources:
In this paper we look at how conventional gold holdings stack up to Monetary Metals Investments, which offer a Yield on Gold, Paid in Gold®. We compare retail coins, vault storage, the popular ETF – GLD, and mining stocks against Monetary Metals’ True Gold Leases.
Adding gold to a diversified portfolio of assets reduces volatility and increases returns. But how much and what about the ongoing costs? What changes when gold pays a yield? This paper answers those questions using data going back to 1972.