Monetary Metals is a financial services company that offers a unique approach to investing in precious metals. Unlike traditional investment vehicles that involve buying and selling gold or silver for fiat currency gains, Monetary Metals provides a platform where investors can earn a yield on their gold and silver holdings, paid in more gold and silver. This concept is encapsulated in their trademarked slogan: “A Yield on Gold, Paid in Gold®.”
Company Overview
Founded by economist and entrepreneur Keith Weiner, Monetary Metals operates with the mission to enable individuals and institutions to save, earn, and finance production in gold and silver. The company is headquartered in Scottsdale, Arizona, and serves clients globally. Their platform connects gold and silver owners with qualified businesses in the precious metals industry, facilitating gold leases and gold bonds as investment options.
Investment Products
Gold Leases
Monetary Metals offers gold leases, allowing investors to lease their gold to vetted businesses in exchange for a return, paid in gold. The lease terms typically range from one to three years, with annualized returns varying based on the specific lease agreement. For example, recent offerings have included gold leases with annualized rates of 2.00% to 4.00%, with payments made monthly. The principal advantage of gold leases is that they provide a yield on gold holdings without the need to sell the metal.
Gold Bonds
For accredited investors, Monetary Metals provides gold bonds. These are private securities that offer higher yields compared to gold leases. Gold bonds are typically used to fund business expansion or to catalyze a project into initial production. The yields on gold bonds can range from 6% to 19% annually, depending on the specific bond offering. These bonds have maturities between two and five years and are repaid with gold.
Gold Yield Marketplace®
Monetary Metals operates what it terms the “Gold Yield Marketplace®,” a platform that offers investors a yield on gold and silver, paid in gold and silver. This marketplace connects gold owners with qualified opportunities in the precious metals industry, allowing companies to access reliable, scalable financing denominated in ounces of gold and silver without the need to hedge. The platform aims to match gold owners with businesses that require capital, facilitating a mutually beneficial arrangement where investors can earn a return on their holdings while businesses can secure the financing they need.
Operational Model
Monetary Metals’ operational model is centered around the concept of using gold as a capital asset. The company sources capital from gold owners and directs it to businesses in the precious metals industry that require financing. This approach allows businesses to obtain capital without the need to sell their gold or take on traditional debt. Investors, on the other hand, can earn a return on their gold holdings, paid in gold, thereby increasing their total ounces over time.
The company employs a rigorous due diligence process to vet businesses seeking financing. Less than 5% of the opportunities reviewed by their expert origination team are approved for inclusion in the Gold Yield Marketplace®. Each approved opportunity includes a summary presentation for investor review, ensuring transparency and informed decision-making.
Market Impact
Monetary Metals has facilitated numerous transactions across five continents, funding a diverse range of businesses in the precious metals industry. These include mining companies, jewelers, and manufacturers. The company’s platform has enabled gold owners to earn a return on their holdings, paid in gold, while providing businesses with the capital needed for growth and expansion.
The company’s approach addresses a significant issue in the precious metals market: the underutilization of gold. An estimated $18 trillion worth of gold lies fallow in vaults, safety deposit boxes, and other storage vehicles, with owners paying approximately $150 billion annually in storage fees. By offering a means to earn a return on gold holdings, Monetary Metals provides a solution to this problem, turning dormant assets into productive investments.
Client Experience
Investors using the Monetary Metals platform have reported positive experiences, citing the ability to earn a yield on their gold holdings without the need to sell the metal. The process of opening an account is straightforward, and investors can fund their accounts with metal they already own or purchase metal through the platform. Once an account is established, investors can review available lease and bond offerings and choose those that align with their investment goals.
The company emphasizes transparency and control, allowing investors to opt out of any opportunity they do not wish to participate in. Payments are made monthly for gold leases and quarterly for gold bonds, providing a consistent income stream for investors.
Conclusion
Monetary Metals offers a distinctive approach to investing in precious metals, focusing on earning a yield on gold and silver holdings, paid in more gold and silver. Through their Gold Yield Marketplace®, the company connects gold owners with qualified businesses in the precious metals industry, facilitating mutually beneficial financing arrangements. This model provides investors with an opportunity to earn a return on their holdings while supporting the growth and development of businesses in the precious metals sector.
