Digital Security Innovators
Issuer of the innovative MetalStream Gold (MSGLD) security token, which is fully backed by certified bullion, and available at a 33.35% discount to the current USD 1,650.50 spot price of gold.
World leader in tokenization of gold
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 33.35% discount to the current USD 1,650.50 spot price.
A guaranteed supply of gold
MetalStream has created an innovative new financing option for mining developers, that also offers liquidity, safety and value to investors. MSGLD tokens are backed by gold from various projects around the world, in low-risk and mining-friendly jurisdictions, and by reputable and experienced mining developers.
Better Than Physical Gold
MetalStream tokens are backed by physical gold to be extracted from the projects where we have acquired metal streams, and the bullion we have stored against redemptions.
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.
Backed by bullion, certified at 99.5% purity, and sourced from reputable and experienced mining companies with strong governance and leadership. Fully compliant with securities laws and regulations.
MSGLD are initially offered at a 33.35% discount to the current USD 1,650.50 spot price of gold. A more flexible, cost-effective, and efficient way to acquire and hold gold than any other.
Digital Security Offering
MetalStream is pleased to offer qualified investors the opportunity to purchase the first issuance of MSGLD tokens now, on the following terms:
Each MSGLD token costs USD 5.50 and is backed by 1/200 oz of gold, giving a 33.35% discount to the current USD 1,650.50 spot price of gold
The minimum subscription for MSGLD in this offering is 500 tokens or USD 2,750
The total number of MSGLD tokens issued in this offering is 16 million
Tokens may be purchased with USD, EUR, ETH or BTC
Tokens will be unlocked for transfers 90 days after the end of the sale.
Industry News & Views
17 February 2020
MetalStream Token Upgrades
MTLSTR and MSGLD are now using the T-REX security token standard
The first versions of both the MTLSTR equity-backed token and the MSGLD gold-backed token were created using Polymath’s ST-20 standard, on the Ethereum Network. Polymath’s focus is now on their proprietary Polymesh network, which is a fundamental issue for us.
MetalStream will be soon selling up to USD 100 million of MSGLD via public offer, prior to our planned listing of MSGLD on a regulated exchange in June. We believe the future of security tokens relies on creating a frictionless environment with the largest possible number of participants, and that a move away from Ethereum will not help provide liquidity for MSGLD holders.
As such, we have moved both MTLSTR and MSGLD onto the T-REX standard developed by Tokeny. Any new tokens issued by MetalStream will be using the T-REX standard.
Usage of T-REX allows for the issuance of security tokens and their subsequent transfer in a compliant way, with a particular focus on KYC and AML regulations.
The regulations applicable to tokenized securities are still evolving in many countries and are expected to change over the next few years. The T-REX standard was built in a modular and flexible way that allows us to change the compliance rules for transfers at any time, keeping up with any changes in regulations.
Of particular interest to us, is that T-REX is the only token standard including an identity management system to control the transfer of securities ownership on the blockchain, OnchainID. Having a third-party verify the claims of a token-holder and storing that verification on-chain, means that the token-holder is now able to take part in various primary market token offerings and secondary market trades without needing to re-verify or provide documentation.
OnchainID and the T-REX standard are used by a growing number of providers in token issuance, primary offerings, and secondary trading. This growing eco-system will help to ensure the liquidity of MTLSTR and MSGLD.
Token swaps are now complete
We have issued 16,000,000 MSGLD from the new contract address to Treasury in preparation for the upcoming MSGLD token sale, and have burned all 16,000,000 MSGLD from the old contract address. Future issuance of MSGLD as we purchase additional gold from suppliers, will be via the new contract address.
6 February 2020
The prospects for a new golden bull market
A statistical analysis
The recent gains in gold prices have inspired discussion within the marketplace concerning where the price of gold will head in the future. A number of commentators are bullish on the prospects for gold and although firm predictions are impossible, analysis of the trends provides valuable insight into where the price of gold may head. The current possibility for an impending bull run on gold seems very real. If that happens it will benefit the industry participants which are nimble and dynamic with their operational models.
The chart above shows the historical prices for gold from the year 2000 until today in a logarithmic format. Firstly we see that from the beginning of this century until gold’s peak in 2012 the price rose by around 600% — a massive windfall for investors.
It is interesting to note what happened after the last peak price and how that bodes for gold’s future value. From the peak in 2012 until today there was an 8-year span that could represent a halfway bull flag. The potential opportunities in this scenario are incredible.
From the beginning of gold’s last price surge in 2000 until its peak in 2012 the appetite for gold pushed prices higher drawing in more investors. Since the last peak, we’ve seen the price of gold fall as the market became saturated and weaker participants divested their gold. What is interesting is what the pattern of the last trough seems to indicate. The chart below from Twitter analyst @Northst18363337 identifies this point well.
What we see in this chart are two lines representing the highs and lows or the resistance and support prices for gold over the last 20 years. Since 2012 the price of gold fell and rose again, represented by the curved parabolic line which identifies the supporting prices during that period. It is very possible that this fluctuation in prices over the previous 8 years represents the market finding equilibrium after the 600% rise during the last bull run.
The possibility now exists that the market has found its equilibrium and prices will move into a new trading range for the future. The current price of gold is hovering around $1,500 and if the same gain profile from the last bull run holds true we could be looking forward to gold prices reaching $8,000-$10,000 range within the next ten years. For those who missed out on the last gold bull run, a new opportunity may be about to present itself.
In this new era, the process of purchasing gold is changing through the developments of security tokens in the marketplace. MetalStream’s MSGLD security tokens are backed by and redeemable for gold bullion and represent significant value for subscribers as they are sold at 30% less than the spot rate of gold. MSGLD tokens offer liquidity beyond physical gold as they can be continuously traded globally and reassigned to the rightful owner in the case of loss or theft. MetalStream’s security tokens do not expire and can be traded indefinitely until the physical gold is redeemed from MetalStream Ltd.
As the price of gold rises the value proposition for MSGLD improves. New subscribers to MSGLD are already purchasing gold at approximately a 30% discount to the spot price of gold. As the tokens are backed by physical gold bullion their market price will be very close to the spot price. If there is some discrepancy the prices should eventually stabilize as smart arbitrage traders and bots take advantage of the temporary price mismatch to purchase underpriced gold.
MetalStream is committed to the success of MSGLD tokens and we would love to see our subscribers receive a stag profit of around 50% delivered through a rise in gold prices and the initial 30% discount to spot price.
30 January 2020
The Launch of MetalStream & MSGLD Security Tokens
Labuan, Malaysia / 31 January 2020 — MetalStream Ltd (LL16561, “MetalStream”) is pleased to announce the launch of MSGLD security tokens (“MSGLD”) bringing the advantages of tokenisation to the global mining sector.
MetalStream is set to transform financing for junior miners through its innovative use of metal stream contracts and the tokenisation of gold to be delivered under these contracts, by its MSGLD security tokens issued on the Ethereum network. Security tokens represent the rights to assets and offer an immutable and auditable record of ownership via the blockchain. MSGLD are backed by and redeemable for certified gold bullion and are offered to purchasers at a discount of approximately 30% to the current spot price of gold.
Liquidity is intrinsic to the MetalStream model as security tokens are more easily stored and traded than physical gold. MSGLD can be traded 24x7 either directly or via a digital security exchange. The gold backing MSGLD is certified at a minimum fineness of 99.5% and is sourced from reputable and experienced mining companies operating in low-risk and regulated jurisdictions. MSGLD are fully compliant with all relevant securities laws and regulations.
MetalStream Managing Director, Mr Rohan Cavaliero is enthusiastic about the company’s enormous potential, “I am delighted to announce the launch of MetalStream and the new MSGLD security tokens. Our promise to all stakeholders is to provide liquidity, safety and value based on forward purchase agreements with public companies which operate reputably and transparently. Furthermore, MetalStream has no debt and undertakes to utilize token subscriptions to fund the forward purchases of in-ground gold resources. Our model enables us to fulfill all our obligations whilst still offering incredible value to subscribers. We have only tokenized small proportions of our suppliers’ known gold resources, leaving sufficient value for them to operate their mining developments profitably.”
MetalStream has signed forward purchase agreements with Canamex Gold Corp. (“Canamex”) and Guyana Goldstrike Inc. (“Guyana Goldstrike”) for a combined total of 80,000 oz of gold to back the first issuance of the MSGLD. Both Canamex and Guyana Goldstrike are publicly listed companies in Canada, with experienced and respected leadership.
Canamex CEO and President, Mr David Vincent is supportive of the MetalStream model, “Gold mining companies have had to become more creative in financing the development of their projects and they have increasingly turned to gold metal streaming transactions as a catalyst to help secure financing for gold mining project development. This gold metal streaming transaction enables the company to finance the project development through monetizing a portion of the value of in-ground defined gold resources.”
Guyana Goldstrike CEO and President, Mr Peter Berdusco, is also welcoming of the new model, “Traditional equity and debt finance markets have not been available to gold mining companies to the extent they have been in the past. Gold metal streaming transactions, like this, are now playing a role in bridging this current challenging environment for mining sector financing.”
MetalStream’s MSGLD represents an evolution in gold securities as they are a more flexible, cost-effective, and efficient way to acquire, hold and trade gold bullion. With MSGLD, investors get the liquidity of a token plus the safety of gold at a 30% discount to the spot price. MSGLD will soon be available for purchase for USD 5.25 per token, with 16 million tokens offered.
Canamex and Guyana Goldstrike are party to forward purchase agreements to supply gold to MetalStream and have no involvement with the issuance of MSGLD security tokens, nor are they bound by the terms and conditions associated with MSGLD security tokens. Neither Canamex, nor Guyana Goldstrike, have expressed any opinion on the viability of, or the risks associated with, an investment in MSGLD security tokens.
MetalStream Ltd (LL16561) is a company incorporated in the Labuan International Business and Financial Centre, Malaysia, which is an independent offshore financial jurisdiction regulated by the Labuan Financial Services Authority under the purview of the Ministry of Finance, Malaysia. Its core business is the issuance of security tokens fully backed by and redeemable for precious metals.
MetalStream has assembled a team of industry leaders in mining, technology and capital markets to bring the benefits of tokenization to the mining industry. MetalStream’s first security token is the innovative MSGLD that is backed by and redeemable for gold bullion and sold at a 30% discount to the current spot price of gold.
MetalStream’s MSGLD represents an evolution in gold securities as they are a more flexible, cost-effective and efficient way to acquire, hold and trade gold bullion. With MSGLD, investors get the liquidity of a token plus the safety of gold at a 30% discount to the spot price.
The Labuan Financial Services Authority accepts no responsibility for the adequacy or accuracy of this release.
This document contains forecasts, projections, goals, plans, and other forward-looking statements regarding MetalStream’s earnings and other data. Such forward-looking statements are based on MetalStream management’s assumptions, estimates, outlook, and other judgments made in light of information available at the time of preparation of such statements and involve both known and unknown risks and uncertainties.
Accordingly, plans, goals, and other statements may not be realized as described, and actual financial results, success/failure or progress of development, and other projections may differ materially from those presented herein.
Even when subsequent changes in conditions or other circumstances make it preferable to update or revise forecasts, plans, or other forward-looking statements, MetalStream disclaims any obligation to update or revise this document.
Unless otherwise specified, all financial data in this document is defined in USD.
To download a PDF version of this press release please click here.