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 29.36% discount to the current USD 1,698.70 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 29.36% discount to the current USD 1,698.70 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.

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METALSTREAM TOKENS

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.

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, and sourced from reputable and experienced mining companies with strong governance and leadership. Fully compliant with securities laws and regulations.

Value

MSGLD are initially offered at a 29.36% discount to the current USD 1,698.70 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, on the following terms:

Each MSGLD token will cost USD 6.00 and is backed by 1/200 oz of gold, giving a 29.36%  discount to the current USD 1,698.70 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 90 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

31 May 2020

Where Has All The Gold Gone? Part 1: The Past

Rise of the goldsmiths — the root of financial manipulation

Something is deeply worrying about the global gold markets. These concerns centre around the accounting and location of the physical gold wealth of nations. An increasing number of commentators have identified the disconnect between the public statements and private actions of some of the world’s most infamous institutions.

The terrifying concern is that deep and rampant corruption has stolen the physical wealth of the people. National gold assets of many nations are stored in a few central bank repositories and repatriating those assets or even getting accurate audits is proving to be almost impossible. The burning question is why?

To do justice to this vitally important aspect of history and current global finance it is necessary to look to the past and identify the root causes of the current problem. This MetalStream discussion will, therefore, be split into three parts — the past, the present and the future.

What we are about to discuss is never taught in any history, finance or business management degrees, yet it is of greater importance than most other aspects of an MBA. This is a terrible indictment of our education, media, legal and political systems and is perhaps the fingerprints of an overarching control system bent on using finance to manipulate the people. If we don’t understand the past we are fated to be manipulated by the present.

“Those who don’t know history are doomed to repeat it.”Edmund Burke

Clipping and manipulation of gold coins is almost as ancient as that form of currency itself. However, we do not need to reach back far in time to understand the present crisis. The roots of our current situation can be traced back to medieval Europe. It is from this point that we see the rise and manipulation of the goldsmiths who have become our global banking elite. The corruption and manipulation spawned in this process is still at work today.

During this period gold was used as a store of value and method of exchange. However, it was evident that using gold for transactions presented several problems. Firstly, gold is heavy and cumbersome to deal with accurately. Secondly, there are security risks represented by carrying significant volumes of physical gold around. Ancient Chinese coins had holes in the centre so they could be strung in chains, yet even a chain of coins worn around the neck can be snatched off.

In the medieval period goldsmiths had the largest safeboxes in the community. Instead of storing their golden wealth at home, many citizens opted to store their physical gold in the vaults of the goldsmiths. Depositors were given paper receipts for their gold and began using those receipts for payments instead of returning to the vaults each time they needed to make payments. This process may even have been encouraged by the goldsmiths themselves.

The goldsmiths quickly realized that only a small proportion of depositors ever returned to collect their gold on any given day and that paper receipts were becoming used as currency. The goldsmiths began writing paper receipts for many multiples of the volume of gold they had deposited in their vaults. They began using false paper receipts to buy up even more physical gold and real assets. In many respects, this was the birth of paper currency, modern banking and what is known as fractional reserve banking.

A fascinating look at this important history can be seen in this youtube video.

Fractional reserve banking allows banks to loan out many multiples of the reserves they hold. In the United States, this stipulation is set by the private Federal Reserve bank and is estimated to be about 10%. This means that banks have 90% of their value lent out to the public while only holding a fractional 10% of their book value in deposits.

As everybody knows banks lend money at interest and require people to use real assets such as land to secure loans. If the interest on the loans cannot be repaid then those real assets used as security are repossessed by the banks. When the economy is under pressure and the people realise that 90% of their money is not in the bank they run to withdraw their deposits. This is known as a bank run and is an instability inherent at the root of modern banking. This ludicrous situation benefits the banks and explains why banks always occupy the largest buildings in any city.

What does this narrative have to do with gold? The gold standard has long been abolished and at one point even ownership of physical gold was made illegal in the United States which we have covered in a previous article. Yet the manipulation of our currencies continues and an understanding of history is essential to move forward and seek an understanding of how the global stock of physical gold is potentially manipulated today.

Many commentators are concerned that the world’s stock of physical gold has been sold many times over than what is actually stored. Other observers are worried that the physical gold stocks have been stolen. If this is true it would represent a continuation of the same exploitation of the economy practised by the goldsmiths in medieval Europe.

Although we need currency to transact, the currency needs to represent stable value rather than digital numbers and corrupt legislation. In this way, blockchain technology and MetalStream’s MSGLD security tokens are an important tool in bringing accountability and transparency to our methods of transaction. The more accountable and transparent our precious metals markets are the better it is for society!

In the next part of this discussion, we will look into the current problems with the custody of physical gold and why there are so many concerns about the golden wealth of nations. In the final part, we will discuss why that custodianship may have been manipulated for theft and the risks posed to society.

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.


Where Has All The Gold Gone? Part 1: The Past was originally published in MetalStream on Medium, where people are continuing the conversation by highlighting and responding to this story.

23 May 2020

How Gold Ownership Was Made Illegal In The US & Lessons For Today

Could history be about to repeat itself?

The spectre of COVID-19 has brought the potential for a new economic crisis to the world. Investors are nervous and looking to move their money into traditional safe havens such as gold. Sadly most of our population is woefully uneducated about history and economics. In this time of crisis, it is fitting that we take a look back at history and economics to see what may be in store for us in the future and the role that gold will play.

Corruption exists at all levels of our economy and the gold market is no exception. The actions of unscrupulous individuals cause the wider society to lose while benefiting the greed of those who manipulate the market. Blockchain technology brings opportunities for greater transparency and accountability which has been demonstrated in cryptocurrencies. As blockchains begin to be implemented across capital markets they have the capacity to bring those noble values to gold.

“The truth is obtained like gold, not by letting it grow bigger, but by washing off from it everything that isn’t gold.” — Leo Tolstoy

In 1933 President Franklin Delano Roosevelt issued Executive Order 6102 making private ownership of gold illegal in the United States. Before this time executive orders had only been used to mandate issues such as national mourning. Roosevelt issued 3,522 executive orders during his time as president, the first of which declared a bank holiday and forbade banks to release gold coin or bullion.

The provisions of Executive Order 6102 mandated that the public had to turn over their private stock of gold to the Federal Reserve bank. Under the law persons found to be in breach of the order could be subjected to fines of $10,000 ($200,000 in today’s currency) and/or imprisonment for up to 10 years! This was a telling move on behalf of the government and indicative of worse to come.

Although it is beyond the scope of this article it is worth noting here that the Federal Reserve is a private bank, owned by private individuals and not part of the US government. Further information on this fascinating subject can be found in this video.

During the confiscation process, the public was paid fiat currency amounting to $20.67 ($405.47 in today’s currency) per troy ounce of gold. However, directly after all the gold was collected by the Federal Reserve the government passed the Gold Reserve Act which immediately raised the price of gold from the previous $20.67 per troy ounce to $35.00, an increase of over 69%. This made a healthy profit of $14.77 per troy ounce for the new owners of the gold.

Copy of Roosevelt’s original Executive Order 6102 from 1933

The stated reason for this unprecedented action was to protect the economy because a lack of trust in the banking system was leading people to hoard gold. However many commentators have noted that in fact these actions were undertaken to bail out the fraudulent actions of the Federal Reserve. US currency was meant to be backed by physical gold and Federal Reserve Notes were supposed to be able to be redeemable for physical gold.

In a “fireside chat” on May 7th 1933, Roosevelt admitted that far more paper money had been printed by the Federal Reserve than there was gold to back that money. In this statement, he exposed the financial corruption which had been swindling the people. He said:

“Behind government currency, we have, in addition to the promise to pay, a reserve of gold and a small reserve of silver, neither of them anything like the total amount of currency.” — FDR

Although many online transcripts of this “chat” omit this fascinating and truthful statement you can listen to it for yourself in this youtube recording of Roosevelt’s comment at minute 16:01.

It is clear that the Federal Reserve had been printing more money than there was gold to back it. To cover their tracks they needed to confiscate the public’s gold for which they would pay the public fiat paper money that they could print for virtually nothing. Raising the price of gold with the Gold Reserve Act was a way to balance the amount of fiat money in circulation with the volume of gold reserves. There were clearly a few winners in this scheme and an untold amount of losers.

It is hard to conclude that Roosevelt was acting in the interests of the American public with his executive orders and we are left wondering whose interests he was really representing.

This history lesson is valuable for us today as there is currently discussion in the mainstream media of the potential for governments to enact a similar gold seizure scheme. Due to the economic situation caused by the COVID-19 many investors are moving their money back into physical gold. Making private gold ownership illegal would deny the public the financial security represented by owning physical gold and potentially allow governments to cover up similar scams and financial trickery.

Should governments choose to ban physical gold ownership one potential option for investors might be security tokens such as MetalStream’s MSGLD which are backed by gold bullion. Security tokens such as these represent physical gold stored in vaults and give investors the chance to benefit from the security of gold without having to store the physical gold themselves. The security tokens themselves represent an immutable receipt for ownership of that gold.

Whatever laws governments enact concerning gold it is important to remember and understand our history and be cognizant of economic processes. Without this knowledge, we are open to the same manipulation and theft that was used against our forbearers.

“Those who do not remember the past are condemned to repeat it.” — George Santayana

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.


How Gold Ownership Was Made Illegal In The US & Lessons For Today was originally published in MetalStream on Medium, where people are continuing the conversation by highlighting and responding to this story.

15 May 2020

Gold Backed Security Tokens & The Relevance For Islamic Banking

Gold Backed Security Tokens & Their Relevance For Islamic Banking

The value of blockchain for the Islamic world.

Islam is considered to be the fastest-growing major religion in our world and almost a quarter of the world identifies with the Islamic faith. Because Islam stipulates certain social practices, these changing demographics are creating cultural shifts in the way that societies function.

As blockchain implementation becomes more widespread it is pertinent to look into the ways in which the blockchain aligns with Islamic beliefs and practices, especially from the perspective of banking and financial practices.

MetalStream Ltd is incorporated in Malaysia which is constitutionally a secular state with a predominately Muslim population. Although MetalStream comprises a multinational team we have a strong respect for Islam its and practices. It is interesting to note that the MetalStream model is positively aligned with the principles of Islamic banking.

Islamic banking is also known as non-interest banking which is based upon the economic principles of Islam. The two fundamental principles underpinning Islamic banking are a prohibition on the collection of interest and the sharing of profit and loss. The key points to bear in mind when thinking about Islamic banking are:

  1. Islamic banking is based on the principles of Islamic or Sharia law which is guided by Islamic economics.
  2. Islamic banks derive profit through equity participation that requires the borrower to share part of their profits with the bank instead of paying interest.

In Malaysia Islamic banking represents a significant portion of the financial market. A striking difference between Islamic banking and banking practices in other parts of the world is the elimination of interest-bearing loans. Although this sounds very strange to some Westerners it wouldn’t if we had a better grasp of history.

The concept of usury can be traced back to ancient times and refers to the profiting from the changing or lending of money. These issues have played a part in our economic development for thousands of years and were discussed in ancient texts. Although it is permitted to lend with interest to a “foreigner” Jewish and biblical scripture has this to say:

“Thou shalt not lend upon interest to thy brother: interest of money, interest of victuals, interest of any thing that is lent upon interest. Unto a foreigner thou mayest lend upon interest; but unto thy brother thou shalt not lend upon interest; that the LORD thy God may bless thee in all that thou puttest thy hand unto, in the land whither thou goest in to possess it.”

Usury is often viewed as the practice of making unethical loans to unfairly enrich the lender at the detriment of the borrower. In the past, the Christian church felt that lending money was creating wealth from the suffering of the poor. This stance has changed and the catholic church regularly makes interest-bearing loans through its banks and institutions.

Interest on loans is purely a concept as there is no basis for it in the laws of nature. It’s clear that at various periods of history the concept of charging interest was considered inappropriate and was even outlawed. This perspective has value as interest creates a section of the economy that profits solely from lending money to other people who are involved in more rigorous activities. Sweat equity is the contribution to a project or enterprise in the form of effort and toil. Lending money does not represent sweat equity and can often be a predatory practice.

As the population of Muslims grows around the world so too is the volume of Islamic banking services. Most Islamic scholars have concluded that digital currencies such as Bitcoin are in accordance with Sharia principles and the advantages of accountability and reduced transaction costs are beneficial to Islamic banking as a whole. This reduction in the cost of transactions is particularly beneficial to Islamic banking given the importance of eliminating speculation, risk and interest in the banking processes. In many respects, it seems as if blockchain technology is more appropriate for Islamic banking than the traditional western banking model.

A further alignment between blockchain and Islamic banking is the fact that Islamic banks are only allowed to create debt if that debt is backed by goods and services. Transactions of this nature need to represent “material finality” which means that they are directly connected to an underlying asset such as gold. The benefit of this is that in many cases options, futures and some forms of derivatives are prohibited.

There is a strong correlation between Islamic banking requirements and financial products such as security tokens which digitally represent real assets on the blockchain. Security tokens such as MetalStream’s MSGLD are backed by gold which is ideal for Islamic banking investment. The tokens themselves cannot be lent with interest which disbars them from financial practices unaligned with Islamic economic principles.

As the use and distribution of security tokens backed by real assets such as gold grow, this growth mirrors the wider growth of Islamic banking. The two are well-matched to support and benefit each other. It is reasonable to conclude that the banking of the world’s fastest-growing religion will be drawn to non-interest bearing financial products backed by real assets such as gold. MetalStream is pleased to be a part of this growing process.

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 Backed Security Tokens & The Relevance For Islamic Banking was originally published in MetalStream on Medium, where people are continuing the conversation by highlighting and responding to this story.

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