Monetary Metals’ Gold Exponential Fund™ provides a way for investors to own gold and earn a yield, by trading between gold and silver. The Fund seeks to lease metal to enhance returns by swapping leased metal for the opposite metal and at the end of the lease, the metal is traded back and returned to lessee.
The Gold Exponential Fund™ profits (or losses) are based on the change in the gold-silver ratio with the Fund assuming all risk of adverse ratio moves. The investor does not incur risk from any changes in the gold-silver ratio.
The Fund’s obligations to investors are backed by physical metal in a secure vault with investors’ silver leases being backed by gold in the vault or investors’ gold leases being backed by silver in the vault.
The Gold Exponential Fund™ can call on the lease at any time and will pay a fixed rate of 0.75% per annum to investor, with interest accruing in increments of 90 days. When the Fund is not using the metal no interest will be paid and investors can cancel on 5 days’ notice and return metal to escrow or offer their metal on other Monetary Metal lease deals.