Liquidity, Safety, Value

MSGLD security tokens are backed by and redeemable for bullion. Get the liquidity of a token, plus the safety of gold, at a significant discount to spot

ABOUT METALSTREAM

Digital Security Innovators

Issuer of the innovative MetalStream Gold (MSGLD) security token, which is fully backed by certified bullion, and available at a significant discount to the current spot price of gold.

World leader in tokenization

MSGLD offers investors an easy way to add gold to their investment portfolio, and a low-risk way to gain exposure to the advantages of digital securities. Whilst other gold-backed tokens are sold at a premium to spot, our innovative model allows us to sell at a discount to the current spot price.

A guaranteed supply of gold

MetalStream sources gold from trading activities, and from execution of forward purchase contracts, or "streams", from multiple, publicly listed junior mining companies. Each of these suppliers are reputable entities operating in low risk, regulated and mining friendly jurisdictions.

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METALSTREAM TOKENS

Better Than Physical Gold

MetalStream tokens are backed by physical gold bullion, certified and vaulted with secure, accredited, third party custodians

Liquidity

Tokens are by their nature more efficiently and easily stored and traded than physical metal. MSGLD may be traded directly 24x7, or via digital security exchanges when listed.

Safety

Backed by bullion, certified at 99.5% purity, stored at third party, accredited custodians, and fully compliant with all relevant securities laws and regulations.

Value

MSGLD are initially offered at a significant discount to the current spot price of gold. A more flexible, cost-effective, and efficient way to acquire and hold gold than any other.

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INVESTORS

Digital Security Offering

MetalStream will soon offer qualified investors the opportunity to purchase MSGLD tokens in a general offer, on the following terms:

Each MSGLD token will cost USD 50.00 and is backed by 1g of gold, giving a 10% discount to the current spot price of gold

The minimum subscription for MSGLD in this offering is 50 tokens or USD 2,500

The total number of MSGLD tokens issued in this offering is 5.2 million 

Tokens may be purchased with USD, ETH or BTC

Tokens will be unlocked for transfers 90 days after the end of the sale.

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NEWS

Industry News & Views

9 August 2020

Gold Royalty & Streaming Companies Are The Most Profitable In The World

A strong business model that delivers excellent value.

The gold market appears to be swinging into a new bull run based on investor fears over inflation and economic uncertainty. While a bull market will be beneficial for junior miners and gold bugs, gold royalty and streaming companies are shining as some of the most profitable companies on the planet today. The secret to their success lies in the strength of their business models.

Royalty and streaming companies have provided investors with an excellent return on investment in the past. Royalty companies have been around for some time but we are witnessing a trend towards increased streaming contracts in the marketplace and companies diversifying across both forms of agreement. The difference between royalties and streaming contracts is important to understand.

Royalty contracts entitle the owner to a portion of the revenue derived from a mining operation. A mine which has sold a royalty contract for 2% of their gold production must provide the owner of the contract with the revenue from the sale of 2% of their gold. In this structure, the royalty company never takes delivery of the gold but receives the proceeds from its sale.

A streaming contract is different in that the mining company has agreed to provide the owner of the streaming contract with the physical commodity at an agreed price. Instead of providing the contract owner with the proceeds of the sale, they deliver physical gold as an asset. A streaming agreement pays an agreed price for a specified volume of the gold mined to be delivered in the future. In this way, streaming agreements provide greater flexibility as the physical gold can be kept and sold to speculate for the best price.

Although these models are simple being profitable requires some luck and intelligent management. One strategy is to buy gold rights at a good price in locations near other productive mines. There are always risks associated with geology and ensuring that strategic decisions are made with the best information available improves the chances for success. Productive mines can start small but grow into large operations. Good luck also plays a role. If significant resources are discovered during the mining process then the returns can be enormous.

Royalty and streaming agreements are able to provide liquidity to junior miners when they need it most. There are often issues with mine financing for juniors where the finance industry can appear predatory. The cost of building an ore processing plant, for example, can be a financial pressure point which opens miners to unfavourable terms. To raise the necessary capital, junior miners must often decide between a high cost of borrowing or greatly diluting their shareholding. Investing in streaming and royalty agreements does not carry the cost of exploration but can still deliver impressive rewards.

These two mining business models have been proven to generate significant profits. Some of the key players in the sector are Franco Nevada, Royal Gold, Silver Wheaton and Sandstorm Gold. Franco Nevada is known to have invested $2 million into a royalty agreement during 1986 and now has a market capitalization of over $29 billion. The entire company is staffed by just over 40 employees making them more profitable than Apple or Google when assessed by earnings per employee.

With the maturation of blockchain technology, the streaming model is being updated to accommodate security tokens. Security tokens are digital representations of assets on the blockchain and bring significant advantages of liquidity and safety to digital assets. Gold-backed security tokens such as MetalStream’s MGLD have the potential to improve financing options for miners while giving investors the ability to profit from the favourable prices of streaming agreements.

The market will benefit from the use of security tokens to represent the assets of streaming agreements. Investors are able to purchase gold at a discount to the spot rate while retaining an immutable digital receipt as ownership. These tokens can then be traded on digital exchanges or used to redeem the physical assets they represent. Continuous global trading improves liquidity while access to the physical asset provides security. In this way, gold-backed security tokens have the potential to open the streaming model to a far greater number of global investors than ever before.

Current developments in gold-backed security tokens will soon spread to other assets. Silver, rhodium, palladium and platinum all represent significant opportunities for tokenization. Given the digital nature of security tokens, it will be possible to offer tokens which represent a managed basket of valuable commodities in the future. An already robust business model will only be strengthened through blockchain technology and access to wider markets.

MetalStream is the issuer of the innovative gold-backed MSGLD token. Please visit our website for more information, and contact support@metalstream.io for enquires related to the purchase of tokens.


Gold Royalty & Streaming Companies Are The Most Profitable In The World was originally published in MetalStream on Medium, where people are continuing the conversation by highlighting and responding to this story.

2 August 2020

Gold’s Rise Is Reflected In The Dollar’s Inflation

Printing fiat dollars is revaluing the price of precious metals.

In the last week, we have seen gold break record highs in price and are expecting it to pass $2,000. This has generated significant excitement in the market which has drawn strong investment. However, a rise in the price of gold against the dollar has its roots in the actions of the US federal reserve. These factors are setting the stage for significant economic impacts on people around the world that will increase global poverty and mortality.

When two units of value are measured against each other, a rise in one is reflected as a fall in the other. This is essentially what is happening in the market for gold. A fall in the purchasing power of the dollar is at the root of the rise in gold’s price. The current record prices are positive for gold miners whose balance sheets are representative of their gold deposits, as well as individuals with the foresight and resources to invest in the precious metal. Sadly these gains are set against a global financial crisis being caused by the unrestrained printing of US dollars and the associated inflation.

The recent unprecedented printing of the dollar has been justified for supporting the economy due to the global lockdown. The shutdown was enacted specifically because of a fear that people would die from a virus. International bodies like the WHO were influential in convincing most countries to bring commerce to a screeching halt by shuttering businesses and implementing social distancing.

The lockdown has resulted in 90% of the world’s children being forced to halt school attendance. UNESCO has estimated that the economic fallout from the global shutdown will result in 90 to 117 million children slipping into poverty. Including their parents, this represents a quarter of a billion new people below the poverty line. Once a person moves over the poverty line their life expectancy drops drastically. If UNESCO is to be believed, an additional quarter of a billion people will die in poverty because of the economic situation caused by the virus lockdown. Potentially the number of deaths from poverty could outweigh the number of deaths from the virus.

The economic downturn has been the justification for printing vast amounts of fiat dollars which are now flooding into the commercial banking system. It is this tsunami of unbacked dollars which are raising the price of commodities such as gold. Gold itself has not changed in intrinsic value, rather it is the dollar which is losing value. In June of this year, the United States printed more money than it had in the two hundred years since it was founded!

Dan Morehead of Pantera Capital pointed out that “Last month the U.S. budget deficit — $864 billion — was larger than the total debt incurred from 1776 through the end of 1979.” He correctly added that “with that first trillion we defeated British imperialists, bought Alaska and the Louisiana Purchase, defeated fascism, ended the Great Depression, built the Interstate Highway System, and went to the Moon”.

It is true that the economic lockdown has impacted the supply of new gold onto the market and restricted the movement of bullion. However, since Nixon removed the US dollar from the gold standard in 1971, the dollar has not been representative of any intrinsic value. When US dollars are printed they increase the volume of dollars in the economy, reducing the dollar’s purchasing power through inflation. It is fair to say that inflation is a hidden tax on those who save as it erodes the real purchasing value of their savings.

Since the introduction of the federal reserve system in 1913, 96% of the purchasing power of the dollar has been stolen in this manner, although some researches put this figure closer to 100%. The US dollar does not operate independently and acts as the base value for global commodities. It impacts all other currencies so an ailing dollar has global implications for the poorest members of society.

The impacts of the federal reserve on the value of the dollar are only just beginning to become apparent. Against gold and bitcoin the dollar is losing value as investors try to hedge their investments. As we see inflation increase we will see greater poverty. There has never been a more important time to own gold to protect yourself against the devaluation of fiat currencies.

MetalStream is the issuer of the innovative gold-backed MSGLD token. Please visit our website for more information, and contact support@metalstream.io for enquires related to the purchase of tokens.


Gold’s Rise Is Reflected In The Dollar’s Inflation was originally published in MetalStream on Medium, where people are continuing the conversation by highlighting and responding to this story.

26 July 2020

The Future For Tokenized Metals

Gold is just the beginning…

The price of gold is on the verge of breaching all-time highs and is driving increased investment in precious metals. Since gold’s record high of $1,920.30 in 2011, blockchain development has become increasingly robust and is bringing enhancements to numerous industry sectors. One of the most interesting implementations of blockchain technology is backing physical gold.

Using gold to back blockchain-based security tokens makes sense given the current state of fiat currency and allegations of rigging across the markets for precious metals. Gold-backed blockchain products are enjoying a vibrant marketplace and are setting the standards for delivering asset-backed digital products. The nature of decentralized markets is encouraging best practices such as transparent auditing and storage of assets backing the tokens.

The benefits that the blockchain is bringing to the process of buying, storing and trading gold can be applied to other metals and should be a catalyst for new and innovative investment products.

In a mirror to gold’s recent price rise, silver is on an upward trend and drawing investors into the marketplace. The value proposition for tokenizing silver is very similar to that of gold. Both gold and silver have been used as stores of value for thousands of years. They both have industrial as well as health applications and are relatively limited in their production volumes.

As security tokens can be continuously and globally traded they are far more liquid than many other forms of precious metal ownership. Tokens are also easier to safely store and do not carry the risks of theft associated with physical metal custody.

As the industry matures there will be greater demand for significant transparency in the process of owning tokens backed by precious metals. After all, it was a lack of transparency which created the theft, fraud and manipulation associated with traditional markets. Delivering secure and transparent storage combined with regular third party audits will continue to grow investor confidence in precious metal-backed security tokens.

There has been significant manipulation of the market for silver and JP Morgan is currently under criminal investigation for spoofing the silver market. Sadly, fines and legal fees seem to be considered part of the cost of doing business for some of the largest traders. The ability to transparently back tokens with silver will provide a market segment for investors wishing to have direct access to their silver, without the necessity to store bulky metal themselves. Several market pundits have expressed the belief that silver is vastly undervalued and if this is the case a rise in silver prices will generate strong growth for silver-backed tokens.

Beyond gold and silver, there are other metals which would greatly benefit from the tokenization process. Not only does it provide storage options that enhance the process of buying and trading precious metals, it can also provide enhanced accountability within supply chains. Commodities can now be registered on a blockchain from the source of production using photos and weights. As tokenization is bringing accountability to the trade and storage of precious metals it can also bring accountability to production for reduced exploitation and fraud.

Many commodities will benefit from tokenization but there are advantages to tokenizing those with strong value propositions. MetalStream expects to see metals such as palladium, platinum and rhodium being tokenized in the future. Similar processes to those utilized in the tokenization of gold could be applied to these valuable commodities to bring transparency and improved ease of investing. Tokenization will provide investors with the opportunity to diversify their portfolios and swiftly trade out of their position as required.

As a variety of valuable commodities are tokenized there exists the potential to manage such products in a portfolio. Portfolio tokens such as these could be actively managed so that they rebalance in reaction to predicted market changes. Not only is the market for tokenized precious metals vibrant at the moment but we can look forward to innovative new products reaching the market in the near future. From an investor’s perspective, it has never been easier to buy and hold such assets.

In this global economic environment, precious metals are the best store of value to hedge against inflation and the effects of the current global panic. MetalStream tokens allow you to easily access precious metals at a low cost yet deliver transparency and accountability to the investor.

MetalStream is the issuer of the innovative gold-backed MSGLD token. Please visit our website for more information, and contact support@metalstream.io for enquires related to the purchase of tokens.


The Future For Tokenized Metals was originally published in MetalStream on Medium, where people are continuing the conversation by highlighting and responding to this story.

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