In a recent interview, Monetary Metals made a case for gold’s position as a mainstream asset earning high-yield opportunities. As we progress beyond the halfway point of 2023, now is the perfect time to look back on gold’s performance during the first half of the year and its expectations moving forward.
Despite the unwavering financial climate and the end of 2022 and the start of the year with rising interest rates, gold managed to pull off bullish investment figures with over a 7% rise year-to-date thus far. The precious metal started the year at $1,854 per ounce, then quickly rose to its high of $2,055 by May 4.
Moving beyond late spring, gold’s successes slightly eased as geopolitical tensions ran rampant with the war in Ukraine, an upcoming U.S. election next year, oil cutbacks, and banking crisis concerns. As economies around the globe began seeing the U.S. dollar as an unappealing asset, gold stepped forward as the safe-haven life ring of choice, with central banks purchasing more gold at the start of this year than any on record.
Monetary Metals, a gold yield marketplace platform based in Scottsdale, Arizona, has taken full advantage of gold’s rise to fame, offering a unique approach to yield opportunities. Essentially, the company uses gold to earn more gold, like any mainstream asset.
The firm uses the gold yield marketplace™ to give investors a platform where they can connect with other institutions or corporations seeking gold capital and wishing to pay for it in gold. Monetary Metals is much more than a trading platform for buying and selling precious metals; it’s a revolutionized concept paving gold’s future as a liquid investment asset.
In May, the company joined an agreement with Asahi Refining to provide metal in return for its assaying and refining services. That same month, the company appointed a new general council member, Jeff Deist, the previous president of the Mises Institute and congressional office member of Dr Ron Paul. Clearly, Monetary Metals is already on a path toward success.
The company’s clientele includes high-net-worth individuals and family offices. Keith Weiner, the company’s founder and CEO, wants to ensure that people understand how unique Monetary Metals truly is, rather than just being a one-off, niche idea.
“Monetary Metals is the only company that offers a Yield on Gold, Paid in Gold® to investors by financing qualified gold-using businesses. Investors can choose between short duration, secured leases, which offer between 2 percent to as high as 4 percent per annum. Or they can choose longer duration, riskier bonds that can offer double-digit yields on an annual basis,” Weiner explained.
“The more wealth one has, the more one stands to lose. And therefore, the greater care one must take in stewarding that wealth,” he continued.
Given the recent events with SVB Financial and Credit Suisse, Weiner believes Monetary Metals provides a much-needed inflation-hedging tool. The more shakes we see in the banking system, the more HNW individuals need to consider high-security options, such as gold investment tools.
“In light of the most recent banking crisis, gold offers so much. It offers one-of-a-kind protection against bank default risk, one-of-a-kind protection against erosion of principal due to inflation, and one-of-a-kind diversification for your asset portfolio, lowering volatility without sacrificing returns,” Weiner explained.
Weiner founded Monetary Metals over ten years ago, though the company began as a simple precious metals research and analysis firm. Monetary Metals announced its Gold Fixed Income product line with the gold lease in 2016. In the last seven years, the company has expanded its product offerings to issue what it believes to be the first real gold bond since 1933, funding over 50 precious metal leases.
“What we offer is gold with yield. This removes the carry cost of owning physical gold, which can create a drag on returns and often deters large institutions from owning it. But even more importantly, our Gold Fixed Income offers an alternative to dollar fixed income and similar products,” Weiner explained.
He continued to elaborate on the volatility of currency-fixed markets with hidden risks. Anyone invested in standard capital must struggle through a constant-uphill battle of inflation.
“Put it this way, assuming an equal risk profile, if you could earn 3 percent in gold or 3 percent in dollars over the next ten years, which would you choose?” he explained.
Whether discussing gold bullion, ETFs, or something unique, like Monetary Metals, there’s no denying the facts: gold is a life preserver in 2023’s crumbling economic state. As always, investors should consult their financial advisors before making any portfolio decisions.