Stop counting dollars

August’s weak jobs report cut the odds of a September Fed hike nearly in half. 

Gold jumped to seven–week highs. Last week, two inflation prints could push those odds right back up.

Through all of it, investors will keep debating the same question: should gold be 5%, 10%, or 20% of a portfolio?

Almost nobody asks what happens after the allocation is made.

Because for most investors, the answer is: nothing. 

The gold sits in a vault, generates storage bills, and waits for the next macro headline to move its price.

The question isn't how much gold you should own. It's what the gold you already own is doing.

Turn idle ounces into productive ounces. Monetary Metals allows clients to earn up to 4% yield on gold, paid in gold. Not dollars but ounces, and we all know ounces are the point.

Most investors buy gold because they question fiat purchasing power. 

Then they turn around and grade the position entirely by its dollar price, the very unit they bought gold to escape.

Measured in ounces, the scoreboard changes. A vaulted position holds 100 ounces this year, next year, and every year after. The dollar value swings. The weight never grows.

Same 100 ounces. Two very different outcomes.

One investor stores their gold and waits, paying storage and insurance costs along the way while their ounces remain idle.

Another puts those same 100 ounces to work at a up to a 4% annual yield, paid in gold.

One year later: 100 ounces to 104 ounces.  With annual compounding, after ten years: 100 ounces to roughly 148 ounces.

Same starting point. But one investor has spent a decade paying to store their gold, while the other used their opportunity to grow their ounces.

The gold price doesn't have to enter the equation. The difference is measured in ounces.

Whatever gold does in dollar terms, both investors experience it. 

Only one of them owns more gold at the end.

Central banks already think this way. They report reserves in tons, not dollar value, and they've spent years adding weight.

Monetary Metals clients can now apply the same standard.

Get the allocation debate right, and you own the correct amount of gold once.

Get productivity right, and your ounces can grow every year after.

Stop counting dollars. Start counting ounces.

Put your gold to work. Start earning yield on gold, paid in gold.