We Need the Sound Money Virus

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The current economic system is unstable, unsustainable, prone to booms and busts, and like all centrally planned initiatives, creates policies which benefit some at the expense of others. It all prompts the question – how do we get back to sound money?

We think a lot about that question here at Monetary Metals. And our answer is our mission. Monetary Metals was created to offer a path to using gold and silver as money again. That’s not to say we haven’t considered other options though.

The Political Approach

The obstacles in the political path are many. Garnering enough support and finding enough votes is a Herculean task which can be politically impossible even for the best of ideas and the noblest of intentions. We know because we’ve tried, several times. And most attempts have ended in bitter disappointment. The issue is worsened by the fact that governments have an excellent track record in using monetary proposals for political favor instead of benefiting the citizenry. The national debt and the countless useless regulations are prime examples.

The Market Approach – Sound Money Going Viral

This is where Monetary Metals has chosen a different path. In the footsteps of Uber, we have looked at the political path, but are working on a better way. Going viral (no, not like Covid!)

Uber didn’t go to the established taxi monopolies and ask permission to revolutionize the transportation business. They didn’t go to the taxi regulators, and beg for a free market in transportation. They simply became so popular with customers, who could now compare the Uber ride-sharing service with the conventional monopoly taxi system. Customers chose Uber and it caught on like wildfire before regulators and lobbyists could conspire to stop it. Uber revolutionized transportation for good.

Similarly, AirBnB did not lobby their local congressman for permission to rent out rooms through their website. Once the “room sharing” cat was out of the bag, hotels could only attempt to soften the impact on their once-sacred monopoly on lodging through restrictions and regulations on the service that is now sweeping the nation and empowering countless communities across the globe.

In the same vein, Monetary Metals is on a path to bring sound money back into the mainstream by simply executing on our mission day in, and day out. Once the virus grows large enough, it cannot be stopped.

The Positive Impact of the Market Approach

Monetary Metals’ business model creates a positive impact. Clients earn interest on gold and silver and grow their holdings. Productive businesses lease or borrow the gold. They get a simple, no hassle way to finance inventory or growth, without having to worry about price risk and hedging. Monetary Metals makes its profit by bringing the two sides together. Everybody wins.

But there’s an even more important benefit. Each deal that Monetary Metals does gets gold flowing again. For gold to be used as money, it must flow. That is, it must be used productively as an investment, not just stored under the mattress, or in a vault collecting dust. When gold can be invested to earn more gold, the world is one giant step closer to regaining the denominator in measuring economic activity. It opens the door for investors to ask a critical question – would you rather earn 3% in gold or 3% in dollars for the next 10 years? In an honest competition between the dollar and gold, we know which investors will choose!

Let time and the market do its work and before you know it, it’s no longer a far-fetched idea. Sound money is the solid foundation we so desperately need. Steady interest rates, healthy economies, capital accumulation and savings, financial institutions that serve their constituents instead of political whims. Doesn’t that sound refreshing? That’s what we’re fighting for. We are making it profitable to invest in the gold standard. We invite you to join us as we march forward toward sound money.

Additional Resources for Earning 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:

The New Way to Hold Gold

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.

The Case for Gold Yield in Investment Portfolios

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.

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