Monetary Metals Closes First Gold Fixed-Income Deal at 5%

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FREEDOMFEST LAS VEGAS, Nev., July 15, 2016—At FreedomFest, Monetary Metals announces that it has closed its first gold fixed-income deal, to finance the gold working inventory of Valaurum. The initial amount of gold meets Valaurum’s current needs, with room for expansion driven by its growth. The interest rate is 5 percent of the gold, paid in gold.

Both gold investors and businesses benefit from Monetary Metals’ innovative financing structure. It reduces risk to investors, while also reducing complexity and cost to businesses.

Monetary Metals provides physical gold to Valaurum, to meet its needs in making the Aurum® gold currency unit. Valaurum’s proprietary manufacturing process requires a fixed quantity of gold. Monetary Metals provides this gold, while retaining ownership.

Conventional precious metal financing is not only costly, when it’s available at all, but complex. Gold’s high value and volatile price means that companies which borrow cash to buy gold are risking big losses. Borrowers typically use complex hedging strategies, which adds extra moving parts, people, and costs. The Monetary Metals solution does not transfer price risk to the company

“Monetary Metals offered Valaurum an unusually affordable and simple product for financing gold for our manufacturing process. By helping us expand production and lower our costs, Monetary Metals has advanced our mission of putting gold into the hands of everyone who wants it,” said Dr. Adam Trexler, President of Valaurum.

“We are excited to help Valaurum with its gold financing needs. Our innovative business model matches businesses who need gold, with investors who are willing to provide it. We can now offer a yield on gold, paid in gold,” said Keith Weiner, Monetary Metals’ CEO.

 

Monetary Metals logo

About Monetary Metals

Monetary Metals (www.monetary-metals.com) is the pioneer in gold investments. Monetary Metals believes a prudent investment strategy utilizes assets to generate yield, not to speculate. The company’s flagship offering is the Gold Exponential Fund. Monetary Metals also offers a fixed income product, with other investment vehicles under development. Monetary Metals publishes groundbreaking research to help investors understand the emerging role of gold as the ultimate measure of wealth.
CONTACT:
Arie Levy-Cohen
[email protected]
917.692.6999

 
Valaurum Logo

About Valaurum

Valaurum (www.valaurum.com) is democratizing physical gold ownership. Using proprietary nanotechnology, Valaurum offers the Aurum®, a ‘Thin Film Precious Metal’ that contains precisely 1/4, 1/10 or 1/20 gram of pure 24K gold and features industry-leading anti-counterfeiting technology. The Aurum is protected by worldwide patents pending and numerous trade secrets. By making everyday values of gold available to all people, Valaurum is creating the premium method of storing value in the 21st century.

CONTACT:
Adam Trexler
[email protected]
503-995-1503

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19 replies
    • Der Kratz says:

      Weight and volume are the problem with high alloy (in the past Cu) content of small, fractional gram, Au content coins. In large quantities, this adds significant logistics and storage costs. The traditional 10% Cu alloy to both Au and Ag coins added circulation resiliency and somewhat complicated those who would, for whatever reasons, melt legal tender coinage. To have a viable coin of even 1g Au, one would probably need at least a 100% (1:1 Au:Cu ratio) alloy. Sub gram coins would be even more problematic. This is why, historically, Ag was the money of day to day living – relatively small earnings and transactions, and Au was money par excellence as a store of value. Aside: this is why I advocate a return to sound money with a 10g Ag “new” dollar, alloyed 10% Cu (notes and account balances demand redeemable,) and Au legal tender coins of 10, 25, and 50 grams (10% Cu alloy) but without new $ face value. Current physical market exchange rate of Au gram in 10g Ag dollars would be the value at the time of transaction. Fractional physical Au gram “notes,” which is what the Aurum appears to be, really only makes sense in a world of fiat currency gone mad.

  1. Keith Weiner says:

    Thank you everyone.

    jham: click on fixed income, and there’s a webform which is the closest thing to a drop box at the moment. 🙂

    pauleis: you couldn’t hold a 0.1g (that is 0.003 ounces). It is a very small denomination, in a convenient package.

  2. Greg Jaxon says:

    Congratulations, M.M.! You’re doing well by doing good.
    Valaurum seems like a key product for any coming age where gold has to circulate in daily commerce.

    • Bron Suchecki says:

      As an example, a kilo is 32.148oz of fine gold, so if you leased gold in one of our deals which paid 5% pa then in a year the leasee would return you 33.755oz. As this is a gold denominated lease, the gold price has no role in the deal terms.

      • Jim_n says:

        Thanks for the clarification re the gold price relative to the lease deal. So, I know you’re not a tax expert but your answer raises another question: In the USA, how is the 5% pa gold return treated tax-wise? You’re not receiving interest income since gold is not money, correct?

        • Bron Suchecki says:

          All countries have laws dealing with “barter” transactions. Just because a transaction does not involve official fiat money does not avoid tax on what economically would be income or capital gain. Just because the lease fee is paid in gold does not make it invisible for tax purposes.

          • Jim_n says:

            My question does not revolve around “tax avoidance” or tax “invisibility”.

            Since I do not know where Monetary Metals is domiciled I have assumed that it is in the USA. Therefore, I, as perhaps a prospective participant in a future Monetary Metals structured gold fixed income deal, am curious as to how MM structured its “first” deal.

            If MM is USA domiciled, then how does it report interest income that is paid in gold bullion? I know nothing about taxes but is this an instance of “payment in kind” (pik). If that is the same as barter, then what’s the benchmark that MM uses for its base loan? Is it the fiat gold price when the deal is struck? If so, when the bullion interest is paid is its base price established at the prevailing fiat gold price?

            Hope this is not too confusing a subject and thanks for your indulgence.

          • Bron Suchecki says:

            We don’t benchmark or set a gold price when the deal is struck, the lease is denominated in ounces and the interest is paid in ounces. While we don’t give tax advice and I’m hardly an expert, the “value” (in inverted commas because one could argue being denominated in ounces is good enough to determine its value) of the interest in fiat dollars for tax purposes will depend on whether the tax payer uses cash or accurals basis.

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