Monetary Metals Issues World’s First Gold Bond Since 1933
Scottsdale, Ariz, January 6, 2021—Monetary Metals® is pleased to announce the issuance of a bond paying principal and interest in gold. The term is one year, and the interest rate on invested gold is 13%. According to company CEO Keith Weiner, Ph.D., it is the first proper gold bond in 87 years.
The proceeds fund a loan to Western Australia gold-mining company Shine Resources, enabling the firm to put its Chameleon project into production. Monetary Metals has performed extensive due diligence on both Shine Resources and the Chameleon project.
Why a Gold Bond Now?
Before 1933, bonds were payable in gold. In those days, gold financed productive enterprise. However, since then, gold had been relegated to gathering dust in a vault. Investors could not earn a return on their gold, and instead paid to store it. For returns, investors had to hold dollars, which have long been subject to debasement by the Federal Reserve. Today, the 10-year Treasury pays less than 1%, while the Fed is trying to generate 2% or more inflation.
“Smart investors are seeking alternative options. Monetary Metals is on a mission to give everyone the opportunity to earn interest on their gold,” said Weiner. “The return of the gold bond market gives people an alternative to zero-interest rate policy and currency debasement,” he added.
“Monetary Metals gold financing is providing access to development capital required to unlock the value within our project while minimizing traditional finance complexity and lowering gold price risk for us,” said Neil Rose, Director of Shine Resources.
Plans to Issue More Gold Bonds
Monetary Metals is working on its next gold bond offerings. To be notified of the next opportunity to invest in gold bonds, please complete the form on this page or contact us. Please note, gold bonds are available only to accredited investors at this time.
Additional Resources on Gold Bonds
For more information on gold bonds, check out the following articles.
- The Benefits of Issuing Gold Bonds
- Who Would Invest in a Gold Bond?
- What’s the Real Purpose of Money?
- PODCAST: Gold Bonds are Back, Baby!
- PODCAST: Using Gold Bonds to Avert Financial Armageddon
- Gold Bonds to Avert Financial Armageddon
About Monetary Metals
Monetary Metals® is Unlocking the Productivity of Gold™ by offering a Yield on Gold, Paid in Gold® to investors, and Gold Financing, Simplified™ to gold-using businesses (mints, miners, refiners, jewelers, etc.). In addition, Monetary Metals‘ market analysis and proprietary charts, including the gold forward rate, are utilized by gold investors and gold-using businesses globally. The company’s content is widely syndicated on gold, alternative investing, and mainstream sites.
Contact
Interested members of the press should view our media page and contact us at press@monetary-metals.com
Congratulations. How much more competitive / attractive are Gold Bonds, compared to what the royalty companies offer PM mining companies today? Can these gold bonds disrupt that sector, should it grow in popularity?
Thanks for your question, Frank. Up until now mining companies have had basically three options to finance their operations:
Raise equity.
Borrow currency from a bank, and hedge the gold price.
Or offer a slice of future earnings – which is a royalty.
Gold bonds technically would be in the category of debt- borrowing from a bank. But a gold bond is potentially superior to a currency loan from a bank because it has a built-in hedge for the dollar price.
Compared to royalties, debt is a one time cost that goes away once you pay it off. Royalties, by contrast, are a cost that continues for as long as the mine is in production. This would potentially make debt the cheaper option over longer time periods.