New Digital Exchange Offers Investors
Gold Exposure and Funding for Miners
(Reuters) – Investors looking for exposure to early stage gold mines can buy millions of dollars of the precious metal at a discount on a digital exchange in a new development which will also provide funding for miners to develop their assets. Physically-backed products such as exchange traded funds (ETFs) are one way for investors to access gold investments, but they don't offer discounts or the capital miners need to develop their operations.
Mines in Australia and Ecuador have made available for sale around $93.50 million worth of gold at current prices, discounted to $80 million, on the Digital Metal Exchange (DMX), an online trading platform based in Australia and launching in June.
Future mine production is turned into tokens or digital assets which can be freely traded on the exchange and redeemed at maturity for either physical metal or cash, DMX Chief Executive Jeremy Samuel told Reuters. "DMX is offering around 50,000 ounces of gold in the form of digital assets, discounted from spot price at various rates, depending on the location of the mine, time to delivery and other factors," Samuel said.
"The discount is calculated by our algorithm, and adjusts in real time as the mine progresses towards delivery." Investors will include individuals, family offices that manage money for ultra-high net worth individuals and jewellery makers.
"Modern customers demand sourcing transparency and clear provenance in the products they buy and use, and jewellery is no different," Samuel said. "We are able to demonstrate precisely where the gold comes from."
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