Monetary Metals Review

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Monetary Metals is a unique precious metal platform, offering you the chance to earn returns on your gold and accounts. Monetary Metal’s gold fixed income products unlock the productivity of gold by providing investors with a real yield while providing low risk. Unlike most platforms, it focuses on bringing back yield on gold through offering gold leases and gold bonds to investors.  In this company review, we will cover the following:

  • How do Monetary Metals Work?
  • Why Yield on Precious Metals?
  • Is Monetary Metals a Reputable Company?
  • Monetary Metals Lease and Gold Bond
  • Monetary Metals Advantages

Investing in precious metals, such as gold and silver, provides long-term growth potential and a strong potential hedge against inflation. The more you explore the ins and outs of their offerings, the more you'll understand the potential benefits for your financial future.

How Do Monetary Metals Work?

Diving into the world of Monetary Metals, you'll uncover a unique financial marketplace that allows gold account holders to earn a yield on gold innovatively designed by its founder, Keith Weiner. His hypothesis? Gold will circulate more freely, as money, if it can earn interest... This core idea underpins the business model of Monetary Metals.

The company's modus operandi is simple yet effective. They identify productive gold businesses — jewelers, miners, refiners, mints, electronics manufacturers, recyclers, and more. These businesses need gold to finance their inventory, work-in-progress, or growth. Monetary Metals steps in to lease or loan physical gold to them, eliminating their need to worry about the fluctuating gold price. This innovative approach allows these businesses to focus on their core crafts without the risk of commodity price changes.

At the heart of Monetary Metals' operations is the gold lease. It's a financial product designed to aid productive gold users in focusing on their essential tasks, like crafting jewelry or minting coins. Businesses pay their rental fee or loan back in ounces of gold, leading to hedge-free financing and enabling clients to earn a return on their precious metals.

Monetary Metals serves as a market maker, matching gold owners with gold businesses. Businesses typically pay a fee of 2% to 3% for the gold they lease. This fee is deducted from the gross interest rate. So, if investors earn 2% to 5% in leases, businesses are paying between 4% and 8% to lease the gold. This model secures a win-win situation for all parties involved.

Why Yields on Precious Metals?

So why seek yield on precious metals, you might ask? Gold and silver, the so-called 'monetary' metals, have proven their worth throughout history. They've been treasured assets from biblical times, a reliable means of storing wealth recognized across cultures and geographical boundaries. Nowadays, they're important elements of your investment portfolio, offering stability, protection, and important diversification during economic uncertainties.

Diversification is about possessing assets that don't correlate, that aren't dependent on each other, therefore exposing you to the same risks. Gold's correlation to other asset classes is impressively low and can help ensure positive returns over time. It's a strategy that's as smart as it is secure.

With all those advantages in mind, and often voiced criticism of gold and silver ownership is the opportunity costs of gaining yields elsewhere such as investments in bonds or high-quality equities. Monetary Metals eliminates this objection and provides the investor with safe asset security married with the advantage of paying interest yields.

You might also consider gold as a safe haven, a bulwark against currency fluctuations and severe monetary policy shifts. Inflation is a major worry for investors. As the value of currency diminishes, the value of gold ascends, making it an attractive investment option. In this modern age, devaluing a nation's currency is seen as an effective monetary policy tool, particularly where government debt is high. Yet, gold remains steady, reflecting the damage and confirming its long-term uptrend.

Investing in precious metals isn't just about preserving your wealth, it's about growing it. Yields provide another compounding gain to the ownership of precious metals. History has shown that gold and silver are not just metals, but monetary saviors in uncertain times. So, consider this: are you ready to embrace the security and profitability that precious metals can offer you? If so, it might be time to invest.

Is Monetary Metals a Reputable Company?

Monetary Metals is a unique company in the precious metals space. To reiterate, the company’s innovative fixed-income products allow you, as a client, to earn interest on gold and silver by leasing them to companies that utilize these metals in productive ways. Traditionally, such opportunities were exclusive to large investment banks' clients, but Monetary Metals has democratized this process, making it accessible to anyone meeting their account minimums.

This ground-breaking approach to precious metal investment has garnered praise from investors and industry insiders alike, including the Family Wealth Report. What sets Monetary Metals apart is not just their unique leasing model, but also their commitment to transparency and security.

While your precious metals are on lease, Monetary Metals keeps a close eye on them. They employ a team of professionals who meticulously conduct due diligence on the leasing companies, ensuring these companies use your gold or silver responsibly. Additionally, a separate team is tasked with monitoring lease compliance and performance. This dual-layered approach safeguards your metals and ensures they are accounted for, even when they're deployed in productive uses.

Through these measures, Monetary Metals provides a unique, secure, and lucrative opportunity for precious metal investments. By leasing your metals to productive industries, you can earn interest, adding a new dimension to your investment portfolio. This provision of return on investment, coupled with rigorous monitoring and due diligence, makes Monetary Metals a compelling choice in the precious metals investment domain. As an investor, you're not just investing in gold or silver, but also contributing to industries that rely on them, thereby fostering economic growth.

Monetary Metals Lease and Gold Bond

You might be curious about what Monetary Metals has to offer. This company provides options like gold and silver leases, where physical precious metals are leased to companies. Additionally, they offer gold and silver bonds, a unique debt product denominated in gold or silver, and you'll need to consider factors like investment minimums, net expected returns, the liquidity of your investment, and whether accreditation is required.

Monetary Metals Lease

Diving into the offerings of Monetary Metals, it becomes evident that their primary service involves issuing gold and occasional silver leases, providing a unique opportunity for companies to rent physical precious metals for a typical period of one year. The lease agreement entails the borrower repaying the leased metals plus additional ounces as fixed monthly interest payments, irrespective of gold's nominal price. Consequently, you can anticipate ending your investment with more gold than you originally invested, presenting a rare chance for compound growth in precious metals investing.

However, it's important to keep in mind some inherent risks. If a borrower goes bankrupt, there may be delays in recovering your initial investment. Moreover, while you're repaid in ounces of gold, a drop in the dollar value of gold during a lease could lead to a nominal loss of value. Hence, despite potentially having more gold at the end, the investment's dollar value may dip. Given the present trend of inflation, currency devaluation, and the mass investment of central banks pushing the price of gold higher, the likelihood of this scenario is not a reasonable concern among long-term holders of gold.

What is the Minimum Investment for Monetary Metals?

To start opening an account with Monetary Metals, you'll need to invest a minimum of 10 ounces of gold, which will vary in price due to market fluctuations. This is a necessary initial investment to have an account and deploy your ounces into leases or bonds.

At the end of the lease period, not only will you retain your initial ounces, but you'll also receive additional gold as interest from the monthly payments.

Monetary Metals' average rate of return for gold leases is around 3%.

For example, if your 10 ounces of gold are earning at an average interest rate of 3% across the various leases that would yield you 10.3 ounces of gold on your original 10 ounces after one year. Keep in mind, the price of gold fluctuates, so the dollar value of your investment could rise or fall by the lease's end.

The minimum amount for investing in a gold or silver bond can vary. Delving into Monetary Metals' investment opportunities requires a clear understanding of these minimums.

Expected Returns Are Net of Fees

In evaluating Monetary Metals' offerings, it's key to understand that their advertised returns are net of fees, meaning the returns you see have already accounted for any costs and charges. This transparency is an asset to you as an investor, as it eliminates the element of surprise often associated with hidden charges in investment transactions.

Monetary Metals conducts its operations with utmost clarity. You're given the expected return on your investment upfront, with no hidden fees or charges. The only scenario in which you might get less than your expected return is if the lessee fails to return the gold with interest. This is a risk inherent in any investment, but Monetary Metals minimizes this risk through careful selection and management of lessees.

While the returns are net of fees, they're also gross of taxes. This means that you'll need to account for any taxes due on your returns. However, Monetary Metals' transparency extends to this area as well. They provide all necessary tax documents to help you accurately calculate and report your earnings. As a result, all potential costs are clear and upfront, ensuring your investment journey with Monetary Metals is as smooth and predictable as possible.

Monetary Metals Gold Bond

While Monetary Metals opens its gold and silver leases to all investors, please be aware that their gold and silver bonds are exclusively available to accredited investors. This distinction is significant as gold and silver bonds are not merely another form of leasing but are a unique security with higher risks and higher returns. The requirement for accreditation is rooted in regulations that are meant to protect you. Gold and silver bonds, like other securities, come with certain risks that could potentially lead to financial loss. Accreditation serves as a means to guarantee that you have the financial wherewithal to withstand such risks.

Monetary Metals Advantages

Let's now turn our attention to the advantages of Monetary Metals. You'll find that earning a yield on gold and silver and free storage are just a few of the significant benefits. They also conduct rigorous due diligence and monitor lessee performance, ensuring you remain in control of your investments at all times.

You earn a yield on gold and silver.

To circle back to a core point, embracing the opportunities offered by Monetary Metals, you can reap a yield on your gold and silver investments, a unique advantage that breaks the norm of 0% or negative returns typically associated with other gold products. This innovative strategy presents an avenue to not only preserve your wealth but also to grow it.

It's important to note the potential returns from Monetary Metals' gold leasing program, which offers a weighted average yield of 3%. This yield might appear modest, but it's a significant improvement over the current situation where your gold investment wouldn't earn you any returns at all.

If you're interested in higher returns, you'll be pleased to know that a recent gold bond offering had a yield of 19%.

These returns offer an incentive to invest in gold and silver, making Monetary Metals an attractive option for those seeking to diversify their portfolios. However, the exact return you earn will depend on your investment preferences. By carefully choosing your investments, you can maximize your yield and gain more from your precious metals. Therefore, Monetary Metals offers a unique opportunity to earn a yield on gold and silver.

Free Storage

Did you know that Monetary Metals offers free storage and insurance for any metal not leased out or invested in gold bonds? This is not a standard offering in the industry, where storage fees can range from 0.50% to 2%. It's a significant advantage that could save you a substantial amount of money over time.

Consider this: if you're storing $50,000 worth of gold, a 2% annual storage fee would cost you $1,000 every year. With Monetary Metals, you'd save that amount and have peace of mind knowing your investment is both safely stored and insured.

But there's more to this benefit than just cost savings. Let's explore the details. By offering free storage and insurance, Monetary Metals is expressing confidence in the security and integrity of their storage facilities. It's a clear signal they're committed to protecting your assets.

Additionally, free storage and insurance mean you can keep your precious metals in a secure location, without having to worry about the logistics and risks of storing them at home. It's a convenience that can't be overstated.

A Proven History since 2016

Boasting an impressive track record, Monetary Metals has successfully completed more than 50 lease and bond deals (including renewals) since 2016. This showcases the company's robust risk management and unwavering commitment to their clients.

Indeed, it's important to understand that our approach to risk isn't just about avoiding financial loss. It's about the confidence you, as an investor, can have in Monetary Metals' ability to handle and manage your investments. It's about the reassurance that your funds are being used wisely and responsibly.

That being said, this doesn't mean Monetary Metals is immune to future defaults. Like any investment, there are risks involved. Yet, their track record implies they've been effective in mitigating those risks thus far.

In the world of monetary metals, a zero percent default rate since 2016 is impressive. It shows Monetary Metals' capability to execute deals successfully, while ensuring they don't overextend themselves financially. It's a confirmation of their prudent approach and dedicated risk management strategies. As an investor, you'd be hard-pressed to find a more reassuring record.

Monetary Metals Conducts Due Diligence and Monitors Lessee Performance

Undertaking meticulous due diligence, Monetary Metals' in-house team scrutinizes every company before leasing any metal. This team of professionals subjects each company to an exhaustive inspection process. Each company is thoroughly vetted and only offered on their platform when found to be compliant.

But the team doesn't stop at due diligence, they also continuously monitor lessee performance throughout the lease term. This encompasses regular reviews of lease compliance, financial health, and overall performance. It's a dynamic and ongoing process aimed at safeguarding your investment.

The potency of this process is evidenced by Monetary Metals' impressive track record. They've not experienced any defaults since their inception in 2016. This can be attributed to their rigorous vetting and relentless monitoring, which ensures lessees are reliable and capable of fulfilling their lease commitments.

You're in Control

While Monetary Metals' stringent vetting processes and continuous monitoring provide a level of financial security, the ultimate control of your investment lies in your hands. With Monetary Metals, you're not using a hands-off approach to your investment; instead, you're taking charge, making important decisions to guarantee your gold investment is well managed.

Tap the banner below to get started on your gold investing journey as well as earn a competitive interest rate on your gold.

Conclusion

To sum up, Monetary Metals offers a solid investment opportunity. They provide a way to diversify your portfolio with precious metals, a tried-and-true store of value. With their unique offerings, they stand out among competitors. So, don't overlook the potential advantages of investing with Monetary Metals. It's a savvy strategy that could bolster your financial resilience and deliver a healthy return. Dig into the details, and you might find it's a perfect fit for your investment goals.

Gold IRA FAQs

Who holds the gold in a gold IRA?

Gold, and other such precious metals are to be stored and insured in an IRS-approved facility. Typically, a third-party company partnered with the Gold IRA company manages the IRS-approved depository

Before selecting a Gold IRA company, review the information about the storage facility options provided.

What is the minimum investment for a gold IRA?

Minimum investments will vary dependent on the gold IRA company you choose. It is incumbent that you take the requisite time to research the various providers for your specific precious metal investment strategy.

We have provided a list of reviews here of the top precious metal ira companies with a range of minimum investment amounts.

 

What are the fees for a gold IRA?

Minimum fees will also vary dependent on the gold IRA company you choose. Setup fees, annual fees, storage fees, and custodian fees are all subject to the discretion of the gold IRA company you choose.

Please see the list here of the best precious metals investment companies for buying gold in order to review the fees that apply.

What Precious Metals Are IRA approved?

Precious Metal IRAs can invest in IRS-eligible gold, silver, palladium, and platinum bullion and coins. The IRS maintains very specific regulations and requirements about the design, size, weight, and metal purity that determine which gold bars and coins can be held in a gold IRA or precious metals IRA.

Investment grade gold coins and bars are required to be at least 99.5% pure, and silver coins and bars must be at least 99.9% pure.

PRECIOUS METALS AUTHOR

Adam ONeill

Author, lifelong investor, and creator of PreciousMetalsInvestmentPortfolio.com

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