Opened an account at Monetary Metals (gold leasing)

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hernancortes

hernancortes

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This is the outfit founded by Keith Weiner. The idea is you have an allocated pool bullion account that earns interest payed in gold. Current leases earn 2-4%/yr. For wealthy investors they offer gold bonds paying better. Also they have leases in silver paid in silver. Minimum gold deposit 10 oz and I think minimum for silver is 400 oz. The leases are for one year at a time.
So far so good on my end. No fees on storage, unlike a vault service. I sent them some bullion and shipping was free. You can also make a cash deposit with them and they will.purchase bullion for your account. I'm in it for what I'm prepared to lose. We'll see how it goes.
 
We have a thread discussing the silver program here:

Viking

Monetary Metals 12% Silver return fund/bond

Any thoughts about this? Send them money and lose your ass when they go out of business?

monetary-metals.com

Earn interest on silver | Monetary Metals

Monetary Metals® is a different kind of gold company. Others buy or sell gold. We are a platform for products that offer investors a yield on gold, paid in gold®. The gold yield marketplace™.
monetary-metals.com monetary-metals.com
  • Thanks

Is the gold program structured the same way? Please do let us know about your experience with it. Thanks!
 
pmbug said:
We have a thread discussing the silver program here:

Viking

Monetary Metals 12% Silver return fund/bond

Any thoughts about this? Send them money and lose your ass when they go out of business?

monetary-metals.com

Earn interest on silver | Monetary Metals

Monetary Metals® is a different kind of gold company. Others buy or sell gold. We are a platform for products that offer investors a yield on gold, paid in gold®. The gold yield marketplace™.
monetary-metals.com monetary-metals.com
  • Thanks

Is the gold program structured the same way? Please do let us know about your experience with it. Thanks!
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Thanks for the link. If I'd seen that I would've posted on that thread instead of starting a new one. It looks like Ewinslow joined a bond while I joined the leasing program instead. There's more inherent risk in a bond (and better return) than a lease but according to MM all 46 of the bonds and leases they've ever offered have paid out as promised.
The monthly statements they send showing gold interest earned are nice and everything but yes, collecting physical at lease's end is where the rubber must hit the road.
 
I almost olened accounts for Kitco's pool and Vaultchain. I bought some maples instead.
 
JayDubya said:
@hernancortes you have more faith in them than I do.

Seems every time I hear anything about those types of operations it's always bad.

I sincerely hope you do well with no loss of principal.
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Exactly....Ponce's spirit was screaming in my ear as I read this. What could go wrong? I wouldn't even send them 1 ounce of silver if that was an option.
 
Just completed a partial physical withdrawal of gold from my account. I must hand it to the personnel at this company, all have been professional, competent, attendant.
However you need to know what you're getting into. If you want to transfer your gold or silver into dollars eventually, there's hardly any impediment I see in collecting all you think you're due. However, if you want phyical gold out of it, the fees in transacting are on the high side. See your account balance is expressed in dollars, and in ounces. When you want to cash out into ounces, MM must go out into the market to purchase the metal, which is where the fees come in. A 0.75% transaction fee (under $250k, less if the total's greater), then a 1% to 4.5% fee above wholesale (whats wholesale? A nebulous price above spot) depending on the product. Bars were quoted at 1% over wholesale while 1 oz eagles were at 2%, Buffs 3% for example.
So you can see that you need to hold your gold in leases for much more than 1 year to even come out ahead if you wanna stay in physical. I wanted to try it out and test them during market stress. I cashed out into gold during the peak of stress, the end of January. All told, they did ok there as I received my coins in 3 weeks.
 
So why would they have to go out and purchase your Gold? Isn't the whole point that you had Gold in the account? Or was it that you asked for Gold in the middle of it still being "leased" and therefore couldn't withdrawal that Gold?
 
Voodoo said:
So why would they have to go out and purchase your Gold? Isn't the whole point that you had Gold in the account? Or was it that you asked for Gold in the middle of it still being "leased" and therefore couldn't withdrawal that Gold?
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My understanding is it's difficult but not impossible to withdraw gold thats in a lease. When your leases are finished your funds/metal go into a lease yield account where they still earn a yield (flat 4%) while waiting to join the next lease. If you notify them you don't want a portion of your funds available to join the next lease, the funds are put into a 'storage account' which earns no interest. That's where you'd leave your money if you were prepping to cash out. A portion of my account remains in active leases.
If you want to liquidate into cash, thats done without any fees and happens faster of course. But thats a taxable event while receiving metal isn't. However, you do get 1009'd annually for the lease interest you earn.
 
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Voodoo said:
So why would they have to go out and purchase your Gold? Isn't the whole point that you had Gold in the account? Or was it that you asked for Gold in the middle of it still being "leased" and therefore couldn't withdrawal that Gold?
Click to expand...
As I see it, it's not gold, like everything else that is not actual physical gold, it's gold in an allocated pool account. You have title to the gold and it's also privately insured, but in the end it's just a claim on gold. The gold you send in is not the gold you'll get back. I sent in odd foreign gold and got back Eagles, which did cost me more- I could've saved 1% by accepting maples or bars.
 
The fees are stiff and do not make since, unless its simply been leased out and at that rate its kinda like breaking a lease early. So I suppose if they give you the ability to control your lease (ie knowing you want a withdrawal) and set it in the different account works.
 
I didnt mention that if you fund your account with higher premium gold like Eagles especially fractionals or Buffalos, MS classic US gold etc, you will receive a credit some % above spot which varies.
 
That sounds like a lot of work and potential delivery risk not to mention high fees & taxes to earn 4%? Explain what is good?
 
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