The Royalty King's Hedge Fund: How to Earn Income on Your Gold Without Selling It
The Alchemist’s Yield: Gold + Options = The New Carry Trade
As you know, I like to practice something which I call ‘Alchemy’.
It involves taking a certain amount of my fiat income and ‘turn it into gold’.
Well, as it turns out, I now find myself holding a decent stack of gold which I don’t know what to do with. It has grown in value organically thanks to its blistering rate of price appreciation over 2025.
I’ve outlined in several pieces how I view gold as my investing hurdle rate (and maybe Bitcoin if I’m feeling contentious) and that I’m skeptical of almost any opportunity outside of Crypto, Royalty & Streamers being able to outperform gold over the intermediate term with the macro economic background being what it is today.
I won’t re-iterate my reasoning here and instead encourage you to read through the archives. Broadly speaking, markets look frothy with the SPX showing an earnings yield of 3% . Nothing outside the index except the land, energy and water assets I already own seems attractive enough for me to want to trade my gold for shares of stock.
Uncle Rick was right when he said that it’s psychologically tough to seperate yourself from your gold holdings.
So, what do you do when you own a stack of gold, which is scarce, valuable, physical property, and you want to monetise it, but you don’t want to sell it or take any kind of counter-party risk?
Today I’m letting you in on my solution to the problem which, in success mode, provides me a cash yield of c11% annually. What’s even more attractive to me is that even if the trade loses 100% of its value I end up with a wonderful net profit overall.
Put differently, it’s an income overlay on a long-term inflation hedge a way to earn yield on stored purchasing power without compromising upside of gold itself.
And the best part: at no time whatsoever am I risking my gold bullion.
Sounds impossible?
I assure you it’s not and I will show how.
Let’s take a look
