How do Monetary Metals’ gold bonds work?
A gold bond is similar to a conventional bond, except the face value is denominated in ounces of gold, and interest and principal are paid in gold.
Bond buyers
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Prospective buyers of gold bonds include individuals or institutions who want to express a long gold thesis while receiving income payments, in gold. Gold bonds offer better potential returns than gold itself, and less risk than the equity of gold companies.
Bond issuers
Issuers of gold bonds include companies who have gold assets and gold income. They borrow gold to match their liabilities to their assets and avoid price risk. Prospective borrowers include refiners, depositories, miners and other gold-related businesses. Gold-denominated financing is non-dilutive capital that provides a built-in hedge, eliminates price risk, and reduces complexity, ultimately resulting in lower financing costs.
Monetary Metals’ in-house origination team sources and qualifies borrowers, conducts due diligence, structures and offers gold bond securities to our clients.
Bond proceeds are typically used to finance already-producing companies or late-stage companies seeking the final amount of capital needed to go into production.
What can I expect to earn in gold bonds?
You can expect to earn from 6% to as high as 19% per year.
See our past funded deals offerings
How does owning gold bonds benefit gold owners?
Gold bonds offer sophisticated investors and institutions a new way to express a long-gold investment thesis, while earning gold-denominated interest income over the holding period. Gold bonds are securities offerings, which can be advantageous for institutions who are prohibited from owning physical commodities, but still want to gain exposure to gold as an asset class.
Benefits of owning gold bonds include
No storage and insurance fees
Earn high yields on gold while remaining long the gold price
Professional due diligence performed on borrowers
Longer maturities means less
reinvestment risk
Did you know?
Monetary Metals issued the world’s first gold bond since 1933.
This bond matured, and investors received their principal and interest in gold.
How to open your account
Opening an account is simple and takes less than 10 minutes.
Please note the following items:
The minimum to open an account is 10 ounces of gold, or 1000 ounces of silver, or the US dollar equivalent.
You can fund your account with metal you already own or purchase metal from us at less than 1% over spot price.
You will need a government-issued photo ID to open your account.
Go deeper—Additional resources
The Benefits of Issuing Gold Bonds
A gold bond is debt obligation that is denominated in gold, with interest and principal paid in gold
Read more