Gyroscopic Investing

Has anyone put money (actually gold) into this company? I have listened to this company's founder on repeated podcast and like him (Keith Weiner) and his message. I get the same feeling when I listen to him that I do when I listen to Paul Belanger, Belangp. This company has an interesting niche. They lease your gold and pay a yield (in gold). They also have created gold bonds.

ppnewbie wrote: ↑Tue Jan 04, 2022 12:13 pm Has anyone put money (actually gold) into this company? I have listened to this company's founder on repeated podcast and like him (Keith Weiner) and his message. I get the same feeling when I listen to him that I do when I listen to Paul Belanger, Belangp. This company has an interesting niche. They lease your gold and pay a yield (in gold). They also have created gold bonds.

Who is borrowing the gold, and for what?

https://monetary-metals.com/faq/

"What kind of businesses? Jewelers, mints, precious metals dealers, refiners, recyclers, mining companies. Basically any company that has physical gold or silver as inventory or work-in-progress.

They happily pay a fee to lease the gold & silver inventory required in their business. Our lease financing eliminates the price risk present in traditional bank financing, and protects their margins (since they no longer have to hedge)."

Hmm! Wouldn't be comfortable with the counter party risk! Not adequately rewarded IMO. If someone were otherwise 100% gold then they might lend 75% of that to themselves, a better counter-party risk factor, and perhaps liquidate that gold to invest in a 33/67 stock/bond asset allocation as a form of gold hedge, perhaps opting for a 50/50 STT/LTT barbell for the bonds. I've heard that can do quite a decent job compared to just holding 100% gold alone

The lessee is insured and monetary metals is also insured.