Monetary MetalsÂ® founder and CEO Keith Weiner started the company for a purpose. His economics view led to a business insight: how the world will return to the use of gold as money.
The path to gold is not paved with buying and selling. When gold was money people did not buy and sell gold, as we do not buy and sell dollars today. Nor is the path built on web shopping cart payment buttons. The fact is that people are not spending their gold. Itâ€™s not that they cannot spend it, but that they donâ€™t want to.
Monetary MetalsÂ® does not sell gold, preferring to partner with good companies when our clients need this service. Keith wants to change the world for good, and selling gold has little effect on the financial system. The gold price may go up or down, but it has zero influence on the interest rate or the burden of debt.
The path to gold is paved with interest. Everyone needs to earn interest, which occurs when those who loan out money charge for the borrowerâ€™s use of the lenderâ€™s money during an agreed-upon time period. Young wage-earners will never accumulate enough money for retirement without compounded interest. Retirees fear they may outlive their money. Insurance companies, pension funds, and annuities all depend on interest to function.
Unfortunately, the interest rate on paper currencies is collapsing to zero and beyond (with corrections along the way). This trend has been going on since 1981, and it cannot now be reversed. Monetary policy is politicized, with powerful interest groups pressuring the Fed to stay the course. Worse yet, the Fed cannot raise rates without triggering mass insolvencies, a repeat of 2008.
With paper currencies not offering interest, gold is the only possible alternative.
Interest is a universal human need. The development of interest on money was an essential factor that allowed Europe to emerge from the dark ages. Without interest, no one will lend money. No businesses larger than a workshop or family farm is possible, because it cannot raise capital. So savers were stuck, would-be entrepreneurs were stuck, and society stagnated.
Without interest, everyone is worse off. In order to buy groceries and pay the rent, they are forced to consume their savings. No longer can they pass something on to the next generation. Instead, they risk running out of money and being a burden on their children. The destruction of interest by central banks worldwide will drive humanity back, if we donâ€™t change course.
Everyone needs a reasonable yield. Monetary Metalsâ€™ vision is to provide a yield on gold, paid in goldÂ®.