The Hidden Cost of a Rising Gold Price

(And How to Eliminate it)

Bullion.Directory precious metals analysis 27 June, 2025
By Keith Weiner
CEO at Monetary Metals

But there’s a hidden downside to it.

As the price of gold goes up, so do your storage costs

You read that right. When gold performs the way you want, traditional vaulting services reward you by…charging you more.

Let’s break down why that happens—and how you can escape it entirely.

How vault storage fees work

Storing gold securely isn’t free, and vaulting companies have a business model built on two basic cost structures: fixed costs and variable costs.

Fixed costs cover things like real estate, staff, ongoing maintenance, and the infrastructure needed to protect large volumes of bullion. Those are pretty static line items that aren’t going to change if the gold price rises to $5,000/oz or falls to $2,000/oz.

The real kicker is the variable cost component, which primarily comes down to insurance. Insurance premiums are calculated based on the dollar value of the metal. So when gold is $1,500/oz your insurer charges a premium on that basis. But when gold rises to $3,500/oz. The insurance premium—and your fee—goes up too.

That means the more successful your investment becomes, the more you pay in storage fees.

Sounds backwards? It is.

Penalized for being right?

We’ve seen this firsthand with clients who reached out to us frustrated and confused. Here’s a paraphrased excerpt from one such client email (shared with permission):

Gold’s up 30% this year. That’s the good news. The bad news? My storage fees jumped, and my vault just sold a small amount of my metal to cover the bill. Now I own less gold than I did at the start of the year.”

That’s not just disappointing – it’s infuriating. You did the hard part: buying gold in the first place and holding onto it, seeing your thesis validated. But you ended up losing ounces because your vault needed to pay itself.

You haven’t traded. You haven’t withdrawn. But you’ve been financially penalized for being right.

And yes, some vaults don’t just charge more – they liquidate a portion of your gold to do it. That’s an insult on top of injury.

It doesn’t have to be this way

Fortunately, there’s a better way.

At Monetary Metals, we flipped the traditional storage model on its head. Instead of charging you to store your gold, we help you earn a yield on it. In gold.

How? Through our gold lease program.

Leasing your gold to vetted businesses—refiners, mints, and jewelry companies, to name a few—means your gold is put to work in the real economy, and in return, you earn a yield, typically around 4% annually, paid in gold.

That’s right— instead of ending the year with less gold than you started due to storage fees, you end the year with more gold than you started with.

What about security?

Great question. Our leases come with:

• Insurance from a major London-based insurer
• 24/7 real-time RFID monitoring—every single piece of leased gold is tracked
• Personal and/or corporate guarantees from the companies leasing gold
• Audited reports and independent verification

So instead of paying a vault to store your gold while inflation eats away at the dollar, you can store it with us for free—or lease it and grow your gold holdings.

Even better, you don’t have to go all in. Want to lease 50% of your gold and keep the rest in storage? Great. We provide storage free of charge for gold you hold in a Monetary Metals account, even if it’s not leased.

Own gold without the penalty

The gold price has surged over the last several years, and many analysts believe it’s just getting started. If gold rises another 20–30% from here, what happens to your storage fees?

Do you want to celebrate those gains while quietly bleeding ounces to cover insurance premiums? Or would you rather be compounding your ounces while gold heads higher?

At Monetary Metals, we believe there’s a smarter and more productive way to own gold. One that doesn’t punish you with fees for owning the very asset you believe in.

In the Gold Yield Marketplace® you can:

• Own gold
• Store it for free
• Or lease it for a 4% yield (in gold)

We built this platform for people who want their assets to work as hard as they do.

Conclusion: Don’t get penalized for being right

There’s a new and better way to store gold—one that doesn’t punish you for your success. With a Monetary Metals account, you can hold your gold securely without fees, or lease it to earn yield, all backed by best-in-class security and insurance.

Own gold and grow gold. You don’t have to pay for the privilege—get paid for it instead. Open your account or learn more about our leasing program.

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