Scottsdale, Ariz, January 6, 2021—Monetary Metals® is pleased to announce the issuance of a bond paying principal and interest in gold. The term is one year, and the interest rate on invested gold is 13%. According to company CEO Keith Weiner, Ph.D., it is the first proper gold bond in 87 years.
The proceeds fund a loan to Western Australia gold-mining company Shine Resources, enabling the firm to put its Chameleon project into production. Monetary Metals has performed extensive due diligence on both Shine Resources and the Chameleon project.
Why a Gold Bond Now?
Before 1933, bonds were payable in gold. In those days, gold financed productive enterprise. However, since then, gold had been relegated to gathering dust in a vault. Investors could not earn a return on their gold, and instead paid to store it. For returns, investors had to hold dollars, which have long been subject to debasement by the Federal Reserve. Today, the 10-year Treasury pays less than 1%, while the Fed is trying to generate 2% or more inflation.
“Smart investors are seeking alternative options. Monetary Metals is on a mission to give everyone the opportunity to earn interest on their gold,” said Weiner. “The return of the gold bond market gives people an alternative to zero-interest rate policy and currency debasement,” he added.
“Monetary Metals gold financing is providing access to development capital required to unlock the value within our project while minimizing traditional finance complexity and lowering gold price risk for us,” said Neil Rose, Director of Shine Resources.
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