Gold shouldn’t be expensive to own

Gold closed July with its first monthly gain since February. Traders are now handicapping a possible Fed hike in September, which means the cost of holding a non-yielding asset is about to get quoted back to investors in real numbers.

But rates are only part of what gold ownership costs.

Storage.

Insurance.

Vaulting.

Opportunity costs.

Those charges have been normalized for so long that most investors have stopped questioning them. They're simply the price of admission.

Maybe they shouldn't be.

Why is gold treated differently from other assets in your portfolio?

Real estate is expected to generate rent.

Stocks are expected to pay dividends.

Bonds are expected to pay interest.

Gold is expected to sit there, and bill you for the privilege.

Monetary Metals, challenges that assumption. Clients can lease their metal to qualified businesses and earn up to 4% yield on gold, paid in gold.

Not dollars. Ounces.

Businesses that use physical gold pay a yield for that use, denominated in the metal itself. It doesn't eliminate price volatility, and it isn't free of counterparty risk, but it does introduce a second potential source of return alongside appreciation.

This closely aligns with how the world’s largest gold holders value metal.

Central banks don't hold gold while waiting for a good exit. They hold it because it's a reserve asset that sits outside anyone else's balance sheet—and they've spent the last several years accumulating it, not unloading it.

While retail investors might ask “how much gold should we own?”, family offices and institutional allocators tend to ask, “what should we do with the gold we already own?”

 Because productivity may matter more than the size of the allocation.

An investor who adds to their position owns more gold once. An investor whose gold earns a yield in ounces has the potential to own more gold every year, (and without writing another check!).

Price appreciation isn’t the only return available to gold owners.

It’s just the only one that pundits measure.

Put your gold to work. 

Learn how to earn up to 4% yield on gold, paid in more gold.