CEO of Monetary Metals Keith Weiner joins Ticker News Insight to talk about the emerging success of Monetary Metals’ gold bonds, failing fiat currencies, and what investors should expect from gold. Ticker News Insights focuses on the best of businesses minds from all around the world.
Why might investors choose gold as a hedge to sidestep inflation in paper currencies? What do the current fiscal and monetary policies of central banks mean for investors? How is that Monetary Metals is able to pay interest on gold to investors?
In this interview, Keith explains why conventional investment opportunities still leave investors exposed to the risks of paper currencies, why gold is the only real way to avoid those risks, and what earning a yield on gold, paid in gold via gold bonds has unlocked for investors.
Mike Loder: From Ticker News right now, the global view. This is ticker news insight. Hello, and welcome back to Ticker News Insight, where we are looking to focus on the best of business with some clever minds joining us from all around the world. I’m your host, Mike Loader into my latest story for the moment, and Keith Weiner is the founder of Monetary Metals, a different kind of gold company. In these days of failing paper currencies, monetary Metals offers investors a yield on gold that is paid in gold. Keith joins me now to tell us more about this exciting prospect. It’s good to see you, my friend.
CEO Keith Weiner: Good to be here. Thank you.
So how and why might an investor use gold as a hedge to sidestep the failing yields of paper currencies that we’re seeing at the moment Obviously, things are up in the air.
CEO Keith Weiner: For so many well, no matter what, if you make a conventional investment, no matter what it is, you’re still exposed to that paper currency, and gold always has been the way out. So people turn to gold because I just think you don’t need to be a PhD in economics to see there’s something wrong in the paper system. And yields are very volatile, which means if you bought bonds last year, you’re sitting on huge losses right now. But generally, there hasn’t been good yields to be had. So people turn to gold. They always have.
Mike Loder: Now, traditionally, gold has not been an interest bearing investment, as I understand it. How do you account for that when you’re working with your clients and helping people out?
CEO Keith Weiner: Well, traditionally, it always was until the European powers, starting before World War I, decided to sever their currencies ties to gold. The US. Continued on the gold standard until 1933. And then many of your viewers may not know this it made it illegal, as in a felony crime, as in go to prison. The way today, if you possess certain white powder, go to prison for possessing gold. And then they re legalize. But at that point two or three generations have gone by, it was forgotten, it was neglected, and it became a bit of a joke. They said, well, let it trade on the futures market with frozen orange juice and pork bellies. And so it’s been sort of derided ever since.
Mike Loder: It’s an interesting thing to consider when you look back at all the history of it. But why are so called alternatives like gold presently in demand based on what you’ve seen out there, Keith.
CEO Keith Weiner: Every government in the world has gone mad in terms of their fiscal policy. We had this COVID disease, which is a fairly serious disease for those very few who were susceptible to it. But every government in the world locked society down, causing countless layoffs, and they said, okay, that’s fine. Nobody has a job anymore, but we’ll just pay them free money. So the fiscal policy was mad, followed by the mad monetary policy of, okay, well, we’ll just issue more currency to COVID it all. And I think anybody looking at that has to become uneasy as to the value of their paper currency. And right now, it’s a turn of everybody outside the US. To see the value of their paper currency is really falling. The aussie dollar fell to about 61 US. Cents. It wasn’t too many years ago more than $1. So that’s like a 40% loss. And if you held gold, you did pretty simple math. You did a lot better than if you held $100 100%.
Mike Loder: So, Keith, last year, Monetary Metals issued the first gold bond in the United States in 87 years. How did that go for investors?
CEO Keith Weiner: They got 13% interest on their golden gold. So if you put 100oz of gold in, you got 113oz on an annualized basis. The bond actually paid off a little bit early, was a little bit less than that, but every investor was paid in full, the principal and the interest. So I think they’re pretty happy.
Mike Loder: Pretty happy. You got to be happy with that. So Monetary Metals has helped finance some Australian mining companies as well, I understand. How has that gone for investors? And could you give us a bit of insight behind those stories?
CEO Keith Weiner: That 2020 bond was from Australian gold mining company called Shine Resources there in Western Australia, just outside of I don’t know how you say it, kargoli. I probably got that totally wrong.
Mike Loder: No, that’s good.
CEO Keith Weiner: We just issued a new bond now for a Norwegian mining company called Akobo, and their asset is in Ethiopia. That one is paying 19% to investors. Again, gold on gold yield.
Mike Loder: So it’s interesting times ahead for you and the team. But, Keith, I want to thank you for joining me on the program and of course, bringing all of this down under as well. But that’s all the time I’ve got for you for the moment, and hopefully we can connect again down the track to find out a bit more.
CEO Keith Weiner: Thanks so much.
Additional Resources for How to Earn Interest on Gold
If you’d like to learn more about how to earn interest on gold with Monetary Metals, check out the following resources:
In this paper we look at how conventional gold holdings stack up to Monetary Metals Investments, which offer a Yield on Gold, Paid in Gold®. We compare retail coins, vault storage, the popular ETF – GLD, and mining stocks against Monetary Metals’ True Gold Leases.
Adding gold to a diversified portfolio of assets reduces volatility and increases returns. But how much and what about the ongoing costs? What changes when gold pays a yield? This paper answers those questions using data going back to 1972.