Tag Archive for: gold

Monetary Metals Finances Scottsdale Precious Metals at 5.5%

Monetary Metals Finances Scottsdale Precious Metals at 5.5% True gold lease finances vintage jewelry Scottsdale, Ariz., May 2, 2017—Monetary Metals announces that it has provided gold financing to Scottsdale Precious Metals. The gross interest rate is 5.5%. Monetary Metals purchased the inventory of Scottsdale Precious Metals, and leases it back. Monetary Metals paid for it […]

Valaurum Lease #1 (Gold)

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. Monetary Metals’ lessors are financing the gold working inventory of Valaurum. For more information see Monetary Metals’ press release. Metal: Gold Commencement Date: Aug 30, 2016 Duration: 12 months […]

Monetary Metals Closes First Gold Fixed Income Deal at 5%

Gold Fixed Income

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, […]

Interest on Gold Is the New Tempest in a Teapot

Zero Hedge published an article on Canadian Bullion Services (CBS) last week. Other sites ran similar articles. The common thread through these articles, and in the user comments section, is that CBS is committing criminal fraud. Or, if not, then it’s a conspiracy by the Canadian government to confiscate gold. Terms like fractional reserve and […]

How Can the State Bank of India Pay Interest in Gold?

How Can India Pay Interest On Gold?

An article caught my eye this week. The Tirumala Tirupati Temple in India has deposited gold at the State Bank of India, and is getting paid interest on their deposit. There is something unique about this. The interest is paid in gold. To understand why no one else is paying interest in gold, let’s first […]

Selling Low and Buying High: Hedging by the Gold Miners Part II

Gold Miners Buying High and Selling Low

In Part I, I made several points. First, that in the last gold bear market, miners capitulated after prices were low and falling for a long time. Then they sold massive amounts of their future production forward. Years into the subsequent bull market, they capitulated again, this time buying back the rights to their own […]

Would Gold Bugs Make Sense?

It Wouldn’t Make Sense Not to A gold bug argues it would not make sense for the Fed not to manipulate the gold price: If gold isn’t suppressed, then the Fed would be leaving it to trade in an open and transparent market Banks can short-sell with impunity because if they take losses they can […]

Gold, Redeemability, Bitcoin, and Backwardation

Gold, Redeemability, Bitcoin, and Backwardation

I recently released a video about the Internet-based currency, Bitcoin. I asked the question: is Bitcoin money? In brief, I said no it’s an irredeemable currency. This generated some controversy in the Bitcoin community. I took it for granted that everyone would agree that money had to be a tangible good, but it turns out […]

Fractional Reserve Banking

Fractional Reserve Banking

There is an old erroneous view of fractional reserve banking. “Naturally, all fractionally reserved banks are de facto insolvent at all times…” The Acting Man blog is usually very good, but it published an article by Pater Tenebrarum containing this comment (http://www.acting-man.com/?p=6781).  If there is a weakness in Austrian School thinking surely fractional reserve banking […]