The Gold Exponential Fund is a private investment fund that aims to generate returns for investors by trading their gold for silver when silver is outperforming, and converting it back to gold at other times, without using derivatives. The Fund uses a proprietary fundamental analysis of supply and demand factors, rather than technical analysis, to determine when to execute trades to own the more undervalued of the two metals. It vaults investors' gold outside the banking system to avoid counterparty risk, and seeks to increase the total ounces of gold owned by investors over time.
1. A Yield on Gold, Paid in Gold
The Gold Exponential Fund
Monetary Metals Fund I, LLLP
Gold is the ultimate measure of wealth.
Let your gold generate real returns.
May 2016
2. A Yield on Gold, Paid in Gold
The Gold Exponential Fund is a managed, private investment created to meet the needs of
sophisticated investors looking to put their gold to work. It vaults investors’ metal outside the
banking system to avoid counterparty risk.
The Fund’s objective is to compound investors’ physical gold by trading it for silver when
silver is outperforming gold and converting the silver back to gold at other times. This yield
on gold is generated without the use of futures, options, or derivatives, though the Fund may
judiciously use leverage via leased metal to enhance its returns. Ultimately, the Fund seeks to
increase the amount of gold each investor owns.
The trading mechanics for compounding gold are simple, but knowing when to execute the
trades is not. Conventional “trend following” (or “momentum investing”) analyzes historical
price action to predict the next move but often misses significant price reversals. This
limitation led Monetary Metals founder Dr. Keith Weiner to develop a proprietary measure of
value based on the fundamentals of supply and demand. Unlike technical analysis, the Fund’s
fundamental analysis aims at capturing value, not momentum. In essence, the Fund seeks to
own whichever metal, gold or silver, is more undervalued.
Fund Attributes
• Investors may subscribe and redeem their investment in gold or fiat dollars
• Fund performance is measured by change in the amount of gold ounces held
• Title to the gold is held in the name of the Fund
• The Fund is a pass-through entity for U.S. tax purposes
• Investors benefit from the Fund’s institutional pricing on trades and insured storage
• Investment in the Fund is always backed by physical metal
• The Fund keeps its books in gold
• The Fund’s financial statements are published quarterly and audited annually
Risk Mitigation
• No hypothecation
• No counterparty exposure
• No use of financial instruments
• No exposure to the banking system
EXECUTIVE SUMMARY
The Gold Exponential Fund
Monetary Metals Fund I, LLLP
3. A Yield on Gold, Paid in Gold
KEY TERMS
The Gold Exponential Fund
Monetary Metals Fund I, LLLP
Inception Date January 3, 2013
Minimum Investment $75,000
Fee Structure
2% Management
20% Performance (based on ounces gained)
Optional Fee Structure
0% Management
30% Performance (based on ounces gained)
Unit of account Gold
Initial Lock-Up Period 2 Years
Redemption Frequency Annual
Redemption Notice 30 Days (annual window after lock-up period)
Redemption Vehicle Gold or Dollars
High Water Mark Yes
Domicile United States
Vault Partner Delaware Depository (FideliTrade Inc.)
Insurance Lloyds of London
Audit Clifton Larson Allen, LLP
Counsel Detwiller DiGiacomo & Pisaruk, PLLC
Holdings 1,400 oz. gold and equivalents (As of Q1 2016)
4. A Yield on Gold, Paid in Gold
Keith Weiner, PhD, CEO & Founder. Keith Weiner is a leading authority in the
areas of gold, money, and credit and has made important contributions to the
development of trading techniques founded upon the analysis of bid-ask
spreads. He is the founder of DiamondWare, a software company sold to
Nortel in 2008, and he currently serves as President of the Gold Standard
Institute USA. He earned his PhD from the New Austrian School of Economics.
Bron Suchecki, VP Operations. Bron Suchecki has over 20 years’ experience in
precious metals, holding a variety of roles across operational, retail, treasury,
depository, and risk/governance areas. As a senior executive of the Perth Mint
and Company Secretary to its Board of Directors, Mr. Suchecki gained a deep
understanding of the strategic issues facing businesses in the precious metal
industry.
John Keel, Controller. John Keel has over 35 years’ experience including CPA
licensure, CFO, internal audit, and controller roles with Fortune 500
companies. Mr. Keel has structured financial reporting systems for start-ups,
directed accounting departments and reported financial results to regulators
and investors.
ABOUT MONETARY METALS
Monetary Metals is the pioneer in gold investments. Monetary Metals believes a
prudent investment strategy utilizes assets to generate yield, not to speculate. The
company’s flagship offering is the Gold Exponential Fund. Monetary Metals also
offers a fixed income product, with other investment vehicles under development.
Monetary Metals publishes groundbreaking research to help investors understand
the emerging role of gold as the ultimate measure of wealth.
The Gold Exponential Fund
Monetary Metals Fund I, LLLP