Investors seeking exposure to early-stage gold mines can buy millions of dollars of the precious metal at a discount from a digital operator who will also provide funds 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 do not offer discounts or the capital that miners require to run their operations.
Deposits in Australia and Ecuador have put about $ 93.50 million in gold for sale at current prices, with a discount of $ 80 million, on Digital Metal Exchange (DMX), an online trading platform based in Australia and to be released in June.
Future production from the mine is converted into tokens or digital assets that can be freely traded at the operator and redeemed at maturity for physical metal or cash, DMX CEO Jeremy Samuel told Reuters.
“DMX offers around 50,000 ounces of gold in the form of digital assets, discounted from the cash price at various rates, depending on the mine location, delivery time and other factors,” Samuel said.
“Our algorithm calculates the discount and adjusts in real time as the mine progresses toward delivery.”
Investors will include individuals, investment platforms that manage money for ultra-high net worth individuals, and jewelry manufacturers.
“Modern customers demand transparency in sourcing and a clear provenance in the products they buy and wear, and jewelry is no different,” said Samuel. “We are able to show precisely where the gold comes from.”
