China Says _GET OUT_ To Paper Gold Market Traders _ Chris Whalen

You mentioned Monetary Metals.

We've had, uh, Keith Weiner on the channel, uh, quite a bit, the CEO of Monetary Metals.

And, uh, it's, it's a very interesting, uh, concept to be able to really loan out your precious metals and then get interest [chuckles] in the form of precious metals.

Can you expand a bit more on that? 'Cause I know you're, uh, you recently partnered with them.

Yes.

In fact, I have a, an interview that we're gonna run with him next week.

And Keith explained very simply why haven't the big institutional investment houses, both in the US and around the world, allocated more to gold and silver.

Well, first and foremost, you had a period when prices were very weak, and so obviously it was not seen as being attractive.

But the key problem was it doesn't track other markets, and it doesn't track the other benchmarks because it doesn't have a yield.

So since you were f- 100% reliant on the price movement of the commodity, it made it more difficult for the Fidelities and everybody else to recommend that as a choice to investors and to build products that enabled that.

Today y- it's different because you have people like Monetary Metals focused on the retail market, and you also have institutional markets where you can own physical gold in the vault, insured, and the banks will lend against it.

They could also lend it out in, in the same way that Monetary Metals does and give you a piece of the action in terms of the profits from that.

So that's the evolution.

I think over time, we're gonna see more institutions figuring out ways to make precious metals, not just a way to preserve value long term, but a way to actually earn yield in terms of short term, because that's how it can compete with stocks and bonds.

You know, right now, probably twenty percent of my portfolio is in REITs because of income.

But I still have almost as much in precious metals.

So that's the way I approach it.