Turning Gold into Gold: A Guide to Using Gold Investments to Generate Yield

Commodities Outperforming Stocks in Recent Years

Over the past 30 years, stocks have provided the greatest returns of any asset class. But commodities have staged a comeback over the past two years, with gold’s outperformance of stocks having been particularly pronounced.

Spectacular Returns for Gold

Since the start of 2024, the precious metal has gained 117%, while the S&P 500 has gained 46%.

Ownership and Storage of Physical Metals

Ownership of physical metals comes with caveats. It can require insurance, and in the case of gold IRAs, storage in IRS-approved depositories. But perhaps the most notable disincentive to owning actual gold is that, as a tangible asset, it does not produce yield — or income generated by an investment.

Gaining Exposure to Gold and Generating Passive Income

However, for investors looking to gain exposure to gold while also generating passive income, there are workarounds.

A Precious Metals Leasing Platform that Pays Dividends in Gold

Monetary Metals is a gold yield marketplace that connects investors with qualified businesses in need of precious metals (e.g., jewelers and refiners). In turn, investors can earn yields between 2% and 5% annually on their gold by leasing it to those businesses for inventory management.

How the Platform Works

Notably, that yield — which currently stands at 4% — is paid in gold. For those who own 10 ounces of gold or have the U.S. dollar equivalent to 10 ounces of gold, the company provides fee-free storage and offers leases up to 12 months. Longer options are available for accredited investors.

Accumulating More Gold

According to Keith Weiner, CEO and founder of Monetary Metals, this approach allows investors to use their yield to accumulate more gold rather than generating dollar income. “Everything we do is denominated in gold,” says Weiner. “If you put 10 ounces into a lease, at the end of the year, you would have 10.4 ounces.”

More on Precious Metals Leasing

Monetary Metals pays monthly distributions, though the yield can fluctuate based on market conditions. The platform is not ideal for investors who want easy access to their assets, with contracts stipulating that lessors shouldn’t expect liquidity until the end of the 12-month term. But the concept is not unlike crypto staking, in which alternative assets are committed to a lock-up period in exchange for yield paid in the same denomination rather than fiat currency.

Gold Miners and Exploration

The shares of companies involved in the exploration and mining of gold enjoyed outsized gains in 2025. More growth could be on the way: according to Ethan Feller, a stock strategist at Zacks Investment Research, the underlying catalysts responsible for gold’s big gains last year remain in place.

High-Yield Covered Call ETFs

Last year, the number of U.S.-listed exchange-traded funds, or ETFs, surpassed the number of U.S.-listed stocks. With ETFs’ growing popularity, niche products have emerged, including funds that prioritize yield while holding physical gold or gold mining stocks.

Generating Income through Covered Calls

These ETFs use covered calls — one of the most common options strategies — to generate income by selling call options against holdings to earn premiums. They then distribute those premiums to investors in the form of dividends. “The trade-off is you’re giving up the upside of the stock portfolio,” Jason Kephart, senior principal with Morningstar, said.

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