Digital gold from Perth Mint threatens $122 billion in gold-backed ETFs Submitted by cpowell on Tue, 2018-01-30 17:37. Section: Daily Dispatches By Tony Boyd Australian Financial Review, Sydney Tuesday, January 30, 2018
The Perth Mint's release of digital gold certificates for trading, holding, and transferring physical gold could have profound consequences for the $US98 billion ($122.5 billion) in gold-backed exchange traded funds.
The technology underpinning the digital gold certificates could have other uses such as the clearing and settlement of equities.
At this stage the digitisation of gold ownership by the Perth Mint is available only to institutional investors, such as banks, which can then offer it to retail customers.
But it is likely that the Perth Mint will overcome the difficult regulatory obstacles to direct retail ownership such as the know-your-customer rules and anti-money laundering regulations.
When that occurs the Perth Mint's digital certificates could become a genuine challenger to gold-backed ETFs, which now own about 2,362 tonnes of gold, according to the World Gold Council. Perth Mint is using technology supplied by digi.cash, a Sydney-based company backed by the Capital Markets Research Centre, to create gold certificates that can be traded on a smart phone.
The supplier of the certificates is a company called InfiniGold, a joint venture between digi.cash and Digital Access Australia. Steve Belloti, the former head of global markets at ANZ Banking Group controls Digital Access Australia.
Andreas Furche, who is chief executive of digi.cash, says the Perth Mint's digital gold certificates will have at least two advantages over gold-backed ETFs.
The first is that they will be cheaper to own.
He said the cost of holding a digital gold certificate issued by Perth Mint will be less than the 30 to 40 basis points charged by ETFs. The world's largest ETF, the SPDR Gold Shares, charges 40 basis points of the net asset value each year. The fund has a market capitalisation of $US36 billion.
The second advantage is that the digital gold certificates provide direct ownership of the gold held in the vaults at the Perth Mint. While ETFs are backed by physical gold held in vaults and warehouses, they interpose a third party between the investor and the bullion.
This creates the risk that the counterparty, such as a fund manager, will not be able to meet their obligations to supply the physical gold. Another way of looking at a gold-backed ETF is to think of it as a promissory note for the delivery of gold. ...
Mines and Money Asia Tuesday-Friday, April 3-6, 2017 Hong Kong Convention and Exhibition Centre https://asia.minesandmoney.com/
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Frank Holmes, CEO-U.S. Global Investors, loves Gran-Colombia Says he "loves" Gran Colombia and says that they've turned the corner and they're undervalued compared to other 150,000 oz gold producers.
Now Could Be a Good Time to Add Gold to Your Portfolio World Gold Council’s Chief Market Strategist, John Reade, said in his 2018 outlook for gold that, “Over the long run, income growth has been the most important driver of gold demand. And we believe the outlook here is encouraging.”
We couldn’t agree more. Gold has historically helped to improve portfolio risk-adjusted returns. It is a mainstream asset as liquid as other financial securities and its correlation to major asset classes has been low in both expansionary and recessionary periods, as the WGC points out.
I’ve always advocated a 10 percent weighting in gold in a portfolio - with 5 percent in bullion or jewelry and 5 percent in gold stocks - If you’re interested to learn more about gold, I encourage you to sign up for my blog, Frank Talk. Happy Investing!
Another Positive Year Ahead for Gold, Says the World Gold Council - Published: Wednesday, 24 January 2018 - By Frank Holmes
Gran Colombia Surpasses 2017 Annual Gold Production Guidance With 173,821 Ounces, Up 16% Over Previous Year TORONTO, Jan. 15, 2018 (GLOBE NEWSWIRE) --
Gran Colombia Gold Corp. (TSX:GCM) announced today that it produced a total of 51,699 ounces of gold in the fourth quarter of 2017, up 26% over the fourth quarter last year. This brings the total gold production for the year to 173,821 ounces, up 16% over 2016 and surpassing its guidance for the current year.
The Segovia Operations continued to be the key catalyst for growth in Gran Colombia’s gold production with 45,588 ounces of gold produced in the fourth quarter of 2017, up 31% over the fourth quarter last year. This brings the total for the Segovia Operations for 2017 to 148,659 ounces, up 18% over 2016 and above guidance for the current year. Company-operated mining areas, led by the continued high grade trend at the Providencia mine this year, produced 17,761 ounces of gold in the fourth quarter of 2017, up 78% over the fourth quarter last year, bringing the full year total to 50,248 ounces, up 67% over 2016. In the fourth quarter of 2017, the Company also benefitted from the additional material sourced from contract miners under new operating contracts entered into since August 2017 under which Gran Colombia is retaining between 10% and 60% of the spot price for each ounce of gold produced. Contract mining production totalled 27,827 ounces of gold in the fourth quarter of 2017, up 12% over the fourth quarter last year. For the full year, contract mining production increased 2% over 2016 to 98,411 ounces in 2017.
At the Marmato Operations, gold production in the fourth quarter of 2017 amounted to 6,111 ounces, comparable to the fourth quarter last year. This brings the full year total to 25,162 ounces, up 7% over its 2016 annual production and within its guidance range for the current year.
Gran Colombia expects to release its 2017 fourth quarter and annual financial results on or about March 27, 2018.
About Gran Colombia Gold Corp.
Gran Colombia is a Canadian-based gold and silver exploration, development and production company with its primary focus in Colombia. Gran Colombia is currently the largest underground gold and silver producer in Colombia with several underground mines in operation at its Segovia and Marmato Operations. Gran Colombia is continuing its expansion and modernization activities at its high-grade Segovia Operations.
Additional information on Gran Colombia can be found on its website at http://www.grancolombiagold.com and by reviewing its profile on SEDAR at www.sedar.com.
Cautionary Statement on Forward-Looking Information: ----is cautioned not to place undue reliance on forward-looking statements.
For Further Information, Please Contact: Mike Davies Chief Financial Officer (416) 360-4653 investorrelations@grancolombiagold.com
Note .... The gold bull market in the 1970s and 1980s happened even as the Fed tested record-high interest rates. The yield on the 30-year Treasury bond rallied sharply during the late 1970s, eventually topping 15% in 1981. Gold rallied from about $100 per ounce in 1976 to over $850 per ounce in 1980.
The latest 8-year chart for $GOLD TA & TI actions by both volume indicators concurrently is very bullish indeed—it means that gold is destined to break out upside from this pattern into a bull market soon. Regardless of what efforts the supposed "cartel" with their paper shenanigans make to stop it, and it's not hard to see why given how much physical has been mopped up in recent years by countries such as China, that understand gold's true value. Upon breaking above the nearby band of resistance, the first target for gold is the quite strong resistance in the $1520–$1560 area.
On $GOLD's 6-month chart, however, we can see that it has had a nice run in recent weeks that has resulted in it becoming rather extended, and with sentiment readings now very bullish, we should not be surprised to see a modest pullback that would probably be occasioned by a relief rally in the dollar to alleviate its oversold condition. We can use any such pullback to do additional buying, especially of gold and silver stocks.
Gran Colombia Gold Corp. (TPRFF) great news this will enhances shareholder value bigtime... perfect deal!!!!
It will save GCM/TPRFF shareholders from the fiat dollar crash ex. HUGE: Trump Vows To Bring Back 'The Gold Standard' = US PROSPERITY - We HAVE THE GOLD!
USA Trump above video Note; EX. SAVIOR GET RID OF >$20 TRILLION IN DEBT + INTEREST TO DEBT LESS TO PAY FOR HIS PEOPLE! - JESUS SAID INTEREST ON DEBT IS UNFAIR - ICELAND GOT RID OF it and US might be next?
NEWS!!! "Gran Colombia Announces Proposed Issuance of up to US$152 Million of Units to Improve Its Capital Structure and Reduce Potential Dilution of Common Shares February 05, 2018 /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, CANADA, Monday, February 5, 2018 – Gran Colombia Gold Corp. (the “Company” or “Gran Colombia”) (TSX: GCM) announced today that it has determined to offer for sale, on a best efforts private placement basis, up to 152,000 units (the “Units”) of the Company for anticipated aggregate gross proceeds of up to US$152,000,000 (the “Offering”). Each Unit is expected to consist of US$1,000 principal amount of senior secured gold-linked notes (the “Notes”) and a number of common share purchase warrants of the Company to be determined based on market conditions. The Company has retained GMP Capital Inc. (“GMP”) and UBS Securities LLC (“UBS” and collectively with GMP, the “Agents”) to act as agents in connection with the Offering.
The net proceeds of the Offering are expected to be used for (1) the redemption in full, at par, of the Company’s (a) Senior Unsecured Convertible Debentures due 2018, (b) Senior Secured Convertible Debentures due 2020 and (c) Senior Secured Convertible Debentures due 2024 (the securities referred to in (a), (b) and (c), collectively, the “Outstanding Debentures”) and (2) general corporate purposes.
The terms of the Offering are subject to finalization based on market conditions. Subject to the final terms of the Offering, the completion of the Offering may be subject to the receipt of regulatory and shareholders’ approvals. Timing for the closing of the Offering and any requisite shareholders’ meeting will be announced by the Company at a later date."
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