While gold continues to captivate global markets with unprecedented central bank acquisitions, another monetary metal is staging a comeback. Despite central banks halting silver accumulation in the mid-1850s and the world departing from the silver standard by the early 1870s, silver remains revered for its role in financial protection.
Monetary Metals is leading the charge to restore silver’s prominence as a full-fledged monetary asset through the introduction of a groundbreaking financial instrument: a silver bond. In an exclusive interview with Kitco News, CEO Keith Weiner suggested that this could be the first silver-based financial loan in over 150 years.
The silver bond aims to bolster Bunker Hill Mining Corp., providing essential capital for the revival and expansion of operations at the historic Bunker Hill Mine in Idaho. With a rich history spanning nearly a century, the mine has yielded 165 million ounces of silver.
What sets this bond apart is its distinctive repayment structure: accredited investors will receive their returns exclusively in physical silver. Over a three-year term, investors can expect a lucrative 12% annual yield. Weiner elaborated that a loan of 1,000 ounces of silver could potentially yield 1,360 ounces upon maturity.
“It’s incredibly exciting to introduce a silver bond after 150 years,” remarked Weiner. “This initiative underscores silver’s enduring significance as a monetary metal. It’s not about advocating for a new gold or silver standard but rather about integrating both into a unified monetary framework. This represents our ambitious experiment.”
Weiner emphasized silver’s attractiveness as a monetary asset, citing its abundant above-ground supply and its affordability relative to gold, which makes it accessible to a broader investor base, particularly smaller savers.
“The characteristics of gold and silver cater to different investor preferences,” he noted. “Silver, in particular, is more favorable for small savers.”
The launch of Monetary Metals’ silver bond coincides with a notable surge in silver prices, recently peaking at a 12-year high above $32 per ounce. Despite subsequent consolidation, silver has maintained crucial support above its 50-day moving average of approximately $29 per ounce.
Weiner remains undeterred by short-term price fluctuations, underscoring the bond’s robust 12% annual yield as a compelling investment proposition. “Silver is gaining traction among investors and is poised to potentially outperform gold in this bullish market,” he predicted.
The eagerly anticipated launch of the Monetary Metals silver bond is scheduled for Friday, June 28, promising to redefine silver’s role in contemporary finance while reaffirming its status as a pivotal asset in the realm of monetary metals.
