The investment strategy gold owners have been waiting for is finally here.
In the precious metals world, a revolution is quietly unfolding. For generations, gold investors faced an impossible choice: lock away physical metal for security while earning zero yield, or sell your hard assets for paper investments to generate income.
That false dilemma ends today.
Imagine watching your gold holdings grow by 4% annually---not through market fluctuations, but through additional physical ounces deposited into your account every month. All while your original metal remains exactly where it should be: under your ownership and physically present.
This is what true gold leasing offers, and it's entirely different from what banks call "leasing." Most gold owners don't realize that traditional bank "leasing" programs typically sell your metal with merely a promise to return it later---creating the very counterparty risk that drove you to gold in the first place.
The contrast couldn't be more stark: Banks convert your tangible wealth into financial promises; true leasing puts your existing gold to work generating a 4% annual yield in additional physical gold---a genuine double win for serious precious metals investors.
Trusted by Gold Investors Since 2012
Monetary Metals has been pioneering true gold leasing for over 13 years, with more than $200 million in precious metals currently under management. Their operations maintain the highest security standards with SOC 2 Type II certification, ensuring your assets receive institutional-grade protection while generating returns.
Key Benefits of True Gold Leasing:
- Physical ownership maintained – Your gold remains yours throughout the lease term
- Monthly interest payments in gold – Watch your ounces grow every month
- Real-time monitoring – Track your gold with advanced RFID technology
- Transparent terms – Clear contracts with qualified businesses only
- Compound your returns – Reinvest your gold interest for accelerated growth
The Power of Compounding Gold at 4%
See how 100 ounces of gold would have grown if you had started at the end of 2019 (when gold was $1,523.1/oz) with compounding at our current 4% annual yield:
That's over $76,966 in additional value created since 2019—without selling a single ounce of your original gold. What would you spend your extra $76,966 on? A new luxury vehicle? College education for your children? Additional precious metals investments? The possibilities are endless when you put your gold to work.
In this article we compare conventional bank leasing with a true gold lease from Monetary Metals. So many questions surround gold markets and the financial products available, and we want to set the record straight.
Bullion Bank and Central Bank Leasing: The Hidden Risks
The main problem with bullion bank and central bank leasing is that it isn't leasing at all.
Unlike true leases, these bank leases often involve selling your leased gold while papering a promise to pay it back later. This creates unclear title and ownership of your gold, extends credit and financial exposure, and requires futures and forwards to hedge gold price exposure.
In short, "leasing" by central banks and bullion banks often resembles lending more than leasing.
The lack of uniformity across these kinds of contracts makes it difficult to analyze. The pattern that emerges, however, is that the leased gold undergoes various degrees of financial engineering. This raises questions around ownership, credit and financial exposure, and price exposure amongst other concerns.
In other words, RISK.
In one agreement we reviewed, the lessee could liquidate gold so long as they repaid the same amount later. Imagine leasing a car to someone and telling them they could sell it, as long as they buy the same car and return it to you later. There are obvious problems with this model.
Thankfully, Monetary Metals developed a better way to lease metal that's clear, transparent, and designed specifically with gold investors like you in mind.
How is a Monetary Metals lease different than a bank lease?
Here’s a chart for quick and easy reference to understand some of the main differences between a bank lease and a Monetary Metals lease:
A true lease, not a loan
Monetary Metals gold and silver leases are structured as a true lease of personal property. This is the same kind of lease you might have with any other tangible property, like an apartment or a vehicle.
Because it's a true lease, a Monetary Metals lease is NOT a promise to pay gold later. That would be a loan. We offer those too. We call them gold bonds.
Gold leases are an agreement to rent your physical gold, for an agreed upon annual rate (currently 4%), to a qualified business, for a pre-defined term, paid in gold.
Physical metal, not paper
Because it's a true lease, your gold is physically present for the entire term of the lease. Just like your apartment is physically there when you rent it, so too is your gold physically there when you lease it through us to a third-party lessee.
To drive this home, they continuously monitor the gold in all leases through tying into lessee ERP systems or partnering with secure logistics providers to track leased gold in real-time using RFID technology. They ensure every ounce is accounted for, all the time.
No selling of leased metal
A lease agreement with Monetary Metals strictly prohibits the selling or removal of leased metal by the lessee. Whether fabricating, refining, or selling at retail, lessees must replenish gold simultaneously -- ensuring the leased amount of metal never falls below the amount specified in the lease.
Interest paid in metal, not dollars
In Monetary Metals leases, the interest is paid in ounces of physical metal. Gold leases pay interest in gold. Silver leases pay interest in silver.
Typically, interest is paid monthly. Clients can see their ounces grow every month as new interest payments hit their account. This gold and silver interest can be withdrawn for delivery, sold for dollars, or reinvested in additional lease opportunities to compound your returns even faster.
Gold interest rates set by the market
The lease rates charged by bullion banks are derived from dollar funding markets (historically LIBOR, now SOFR) and heavily influenced by the Fed Funds rate. If dollar rates rise, lease rates will typically rise, and vice versa.
In contrast, their leases are true gold leases and therefore have true gold interest rates. Rates are set by the supply and demand of gold owners and qualified gold businesses that come together in our Gold Yield Marketplace™.
They employ a team of deeply experienced, in-house originators who work to qualify, vet, and price lease and bond opportunities. Clients have the right, but not the obligation, to participate in those opportunities. If you don't like a deal, you don't have to put your gold in it. This is remarkably different from how the dollar world operates. Imagine trying to do something like that at your bank or the Federal Reserve!
Frequently Asked Questions
What's the minimum gold required to participate? Gold lease opportunities typically require a minimum of 10 ounces, making this accessible to most serious gold investors.
How quickly can I access my gold if needed? Your lease agreement includes clear terms for the duration of the lease (typically 6-12 months). At the end of the term, your gold plus all earned interest is fully accessible. For urgent liquidity needs, they may be able to find another client to take over your position in the lease on a best-efforts basis.
What security measures protect my investment? We implement multiple layers of protection including: continuous monitoring through RFID tracking and ERP integration, regular physical audits by independent parties, strict qualification of all business lessees, comprehensive insurance coverage, and legally-binding lease agreements that maintain your clear title to the metal. The metals are also covered by a comprehensive insurance policy while on lease.
Your Gold Working for You: The Double Win
With Monetary Metals, you retain clear ownership of your gold while earning a yield. You know where your gold is, and no ounce goes anywhere unless you decide to move it.
Businesses get reliable gold financing, without all the engineering and complexity of a bullion bank lease.
It's a win-win.
Gold that sits idle is gold that's not working for you. Turn your unproductive metal into a growing legacy starting today.
Ready to put your idle gold to work? Lease your gold with transparency, security, and start earning real returns every month in ounces of gold and silver.
Don't miss this opportunity -- Claim your 4% gold yield now
The sooner you start, the sooner your gold starts working for you. Let's have a discussion on how to put your gold to work.