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This post was written by Ronnie Stoeferle
“They must be on to something” I thought as I walked down the hall of the hotel lobby. This was after seeing Keith Weiner and Saad Zein hold more meetings with potential clients than there are hours in a day.
I know Keith and am familiar with his writings. He has been a contributor to the In Gold We Trust Reports over the years, and he and my partner Mark Valek attended the Fekete seminars together. But it was at the Dubai Precious Metals conference last year when I finally got a glimpse of the Monetary Metals business in action.
It takes a lot for me to openly admire the work ethic of someone else. But there I was, genuinely impressed by the drive and ambition on display by the Monetary Metals team. This led to questions with Keith and his team around the business. The more I heard, the more I liked it. But let me come back to Monetary Metals. First, a little background.
As an Asset Manager and researcher, I’ve covered gold for almost 20 years. You may know me from the In Gold We Trust Report series, but what you may not know is that the first iteration of that report came as early as 2006. I predicted then that the gold price would eventually trade above $2,000/oz (it was only around $500 at the time).
While gold has performed well since then, more importantly, its role as a foundational financial and monetary asset is as strong today as ever, despite substantial changes. We’ve seen tumultuous elections, incendiary wars, a global pandemic, national onshoring, the advent and rise of cryptocurrencies, rising-falling-then-rising-again interest rates etc. The point is this—the world may change, but gold remains the same.
Investors should take comfort in this fact.
Of course, I’m no stranger to the naysayers. I’ve heard repeatedly the arguments that gold is a dead asset, a relic of the past, and no longer relevant for today. And yes, that it doesn’t produce yield and one cannot eat it (or you could, but I don’t recommend it.)
For the record, I don’t think any of these are true. Gold is a useful asset to own even without a yield. This is a position that Monetary Metals affirms. Nevertheless, the fact that Monetary Metals is producing options for gold owners to earn a yield is significant.
It’s significant not because it silences all the naysayers, but because it advances the appeal for gold as money during a critical time in our monetary history.
We’re in the middle of a monetary paradigm shift, whether we like it or not. This moment we find ourselves in is the result of a confluence of upstream factors. We are the inheritors of a monetary experiment that began in 1971 with the first free-floating “fiat” currencies. We have witnessed global debt and government spending reach extraordinary levels at a breathtaking pace. We have watched central banks try in vain to financially engineer economic outcomes only to make a real mess of things in the process. We have experienced the internet uniting global trade and commerce in ways never imagined. We have seen the dawn of digital money, cashless societies, and encrypted currencies that exist outside of any sovereign authority. We have lived through a global pandemic and are still wrestling with its fallout which includes the highest recorded inflation levels since this new era began.
For the first time in a long time, the question “what is money?” isn’t an obscure topic for ivory tower economists at the local pub. It’s a question of existential importance for our generation, and the ones that come after.
For those of us who can see the damage and destruction wrought by rampant government spending, unlimited money-printing, and the full-on politicization of money, the answer is clear.
We need a solution that strikes at the root of our problems.
We need sound money.
The aim of investment is to secure and build wealth for the future. Money is at the heart- center of what makes building wealth even possible. Sound money avoids the damage done in the last 60 years and offers us the greatest chance of peace and prosperity.
Monetary Metals is one, if not the only, company I know that is actively building the financial plumbing for a market that runs on sound money. This is a cause I wholeheartedly support. In fact, the entity my partner Mark Valek and I used to invest in Monetary Metals is called Sound Money Capital, AG.
The world needs a sound money alternative, and the need is great. Monetary Metals is working feverishly to fill that need.
That is why I invested in Monetary Metals. I eagerly await their continued growth and success, for the sake of our monetary future.
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.
The Case for Gold Yield in Investment Portfolios
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.
