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.

learn more about the offer

NEWS

Industry News & Views

6 January 2021

The Importance Of Regulation: Security Tokens & ISIN Numbers

Regulation provides confidence and security to investors.

Regulators around the globe are working to ensure that appropriate regulations are in place to facilitate broader adoption of security tokens. These regulations are necessary to protect both investors and the integrity of markets. Appropriate regulation for security tokens should provide the same protections that are currently given to investors in traditional markets. As security tokens are a relatively new investment instrument, it will be important to ensure that regulators keep pace with this rapidly evolving financial landscape.

Before we delve into the regulation of security tokens, it is necessary to address the nature of regulation. It is vital that investors are given protection through legislation because, without protection, investors are open to risks from theft and manipulation. However, not all regulation is beneficial for individual investors or the broader market. Regulation is often used to stifle competition and protect the financial interests of those who can afford to pay lobbyists. Regulation of this type results in systemic corruption that produces significant harm. As a general rule, regulation which favours individual investors is preferable to regulation that favours large private financial interests.

Security tokens have the potential to greatly improve the functions of capital markets and bring wealth creation opportunities to a larger percentage of the world’s population. In December 2020, the market capitalization for security tokens was over $374 million, yet The World Economic Forum has estimated that tokenized markets could be worth up to $24 trillion by 2027. The growth potential for security tokens combined with their reduced friction promises to revolutionize how global markets operate. Security tokens can be continuously traded from smart devices and importantly can be fractionalized. This fractionalization allows for greater participation from investors who have previously been unable to access capital markets. It is estimated that the wealthiest 1% of the globe now holds as much wealth as the rest of the world combined. Financial markets have traditionally been the domain of the wealthy, but through fractionalization, these markets will become accessible to smaller investors. This evolving investment landscape emphasises the need for appropriate regulation to protect individual investors.

Numerous countries are contributing to the development of regulations for digital securities. Germany’s cabinet recently approved legislation to facilitate the use of security tokens for transacting traditional securities. Singapore has aggressively approached regulation with DBS bank recently announcing the launch of an exchange dedicated to digital assets and tokenized securities. Singapore’s approach reflects the perspective of other small nations such as Cyprus, Luxembourg and Monaco who see regulation as a competitive edge in this evolving marketplace. It is evident that appropriate regulation will be the foundation upon which investor confidence in digital securities is built.

One of the mechanisms that has traditionally provided investors with insight into securities investment is the ISIN system. The ISIN Organization is independent of governments, banks and financial institutions and registers identification numbers for regulated securities. These are known as International Securities Identification Numbers (ISIN). These numbers can only be issued to regulated securities and serve to uniformly identify securities for global trading and settlement purposes. Investment institutions rely on ISIN numbers to identify and justify their securities investments to their boards.

MetalStream’s MSGLD is a regulated security which has been issued with the International Securities Number: MYA165612B00. In the market for gold-backed security tokens, MSGLD is the only participant which has undertaken this process. Why other products have not taken steps to be issued an ISIN is unclear. Perhaps their gold-backed tokens do not qualify as regulated securities. Ideally, all participants in the gold-backed token industry would be regulated securities and obtain ISIN identifications. Due to the risks associates with investing in unregulated products, regulated securities provide greater protection for investors.

As the market for digital securities matures we will witness an increasing emphasis on regulation. It will be important that these regulations are focused on the needs of individual investors rather than the desires of private financial institutions. The transparency and accountability afforded by the blockchain will assist this process and help promote best practices amongst market participants. As the regulatory framework develops we will be following it closely to identify the opportunities and threats of regulation.

MetalStream is the issuer of the innovative gold-backed MSGLD token. Please visit our website for more information, and contact [email protected] for enquiries related to the purchase of tokens.


The Importance Of Regulation: Security Tokens & ISIN Numbers was originally published in MetalStream on Medium, where people are continuing the conversation by highlighting and responding to this story.

13 December 2020

The Specter Of Hyperinflation

The nature of hyperinflation and the current state of the US dollar.

The US Federal Reserve is creating money at unprecedented rates that equate to hundreds of billions of dollars per week. The impacts of these “quantitative easing” policies are highly concerning and analysts are beginning to wonder if they could lead to hyperinflation. If this were to happen the devastating results would be felt around the world and generate enormous social unrest. In this article, we delve into the mechanisms of hyperinflation and look at what is currently happening to the US dollar.

By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.” — John Maynard Keynes

Hyperinflation is presented as a relatively rare phenomenon for developed economies but it has occurred many times throughout history. The subject is rarely discussed in contemporary culture but the effects of hyperinflation are terrifying. Hyperinflationary events have previously ravaged countries such as Germany, Russia, China, Yugoslavia and Hungry. The unprecedented actions of central banks today mean the discussion of hyperinflation may now be more prescient than ever before.

To understand the process of hyperinflation we must first define inflation. As we discussed in our previous article Inflation, Gold And The Dollar, inflation occurs when central banks increase the supply of fiat currencies. Fiat money is currency that is not backed by a physical commodity such as gold or silver. It is easily created through an accounting process used by central banks and all global currencies today are considered fiat. In simple terms, when the supply of fiat money is doubled the purchasing power of all the existing fiat currency is halved. Further information on this process can be found in G. Edward Griffin’s excellent book The Creature From Jekyll Island or you can watch the author discussing the subject in this video. In essence, inflation is a hidden tax on people who save in fiat currency. Price rises through inflation reflect the falling value of fiat currencies not the rising value of commodities.

Hyperinflation is inflation on steroids. It is defined as the “rapid, excessive, and out-of-control general price increases in an economy”. Many definitions put the threshold for hyperinflation at the point where prices rise more than 50% a month, however, there are examples of hyperinflation where prices rose 5–10% in a day! When prices rise this rapidly wages can’t keep up and people begin to starve. During 1922 and 1923 hyperinflation pushed the exchange rate of the Weimar Republic’s mark from 2,000 per dollar to over 1,000,000. The paper currency became meaningless and the price of a loaf of bread rose from 250 marks to 200 trillion marks.

As hyperinflating money becomes worthless the price of consumer products skyrocket. People begin to hoard commodities and many people cannot afford even the most basic necessities. Businesses become bankrupt because the population cannot afford to buy their products. Despair and misery accompany the unravelling of society. In such times of desperation, the population is easily manipulated as witnessed in Germany prior to WW2. We have seen these tragic scenarios replayed throughout every case of hyperinflation.

Source.

Hyperinflation often accompanies war and political theft but must be facilitated by central banks “creating” enormous quantities of fiat currency. The central banks of the world are independent of nations and organized through the secretive “bank for central banks”, the Bank of International Settlements. Should you be under any illusions about the independence of central banks you can watch Alan Greenspan, the former Chairman of the Federal Reserve, stating that the US central bank is not subject to the governance of any government agency during minute 7 of this interview. Central banks seem to do whatever they want and at the moment they are “creating” money at unprecedented rates. It is these actions that are giving rise to concerns about hyperinflation.

The graph above comes directly from the US Federal Reserve and shows the M1 money stock for the last 10 years. The M1 money stock is the country’s basic money supply which is used as the medium of exchange. Something unprecedented has happened to the US dollar this year. During the six weeks between March 16th and April 27th, the M1 money supply increased by $773 billion. Between the two weeks from November 16th to November 30th, the M1 money supply rose by $810 billion. The US Federal Reserve is creating more than $410 billion a week and this trend is rising. The unprecedented growth in circulating fiat money will undoubtedly have an impact on inflation rates. It remains to be seen if this will turn into hyperinflation but if these policies continue there will be serious repercussions.

Stories from survivors of hyperinflation crises are harrowing and always speak of the need to store value outside fiat currencies. Gold and silver are ideal for this purpose because they are universally accepted as mediums of exchange and are limited in supply. With the unprecedented printing of US dollars, it may shortly become imperative to have access to precious metals.

MetalStream is the issuer of the innovative gold-backed MSGLD token. Please visit our website for more information, and contact [email protected] for enquiries related to the purchase of tokens.


The Specter Of Hyperinflation was originally published in MetalStream on Medium, where people are continuing the conversation by highlighting and responding to this story.

5 December 2020

Inflation, Gold And The Dollar

Rampant inflationary monetary policy will fuel global demand for gold.

This year the United States Federal Reserve has implemented unprecedented quantitative easing policies that will have dire consequences for the value of the US dollar. The ramifications of these actions will be global and have a direct impact on the value of gold and other precious metals. Without an understanding of inflation and its impact on the world’s economy, we are denied the knowledge to avoid the repercussions of these policies. We have discussed this topic in a previous article but it is an important subject that deserves to be understood within the context of evolving circumstances.

Let us not forget the wise words of the 20th president of the United States James Garfield:

Whomsoever controls the volume of money in any country is absolute master of all industry and commerce and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.

Inflation is a process that is often discussed but rarely explained. When it is taught in schools and universities, inflation is expressed as a constant because if the truth were told students would be furiously demanding systemic changes to the global financial system. The mechanisms and impacts of inflation are purposely left opaque and shrouded in economic jargon.

To understand inflation we must first understand that our currencies are fiat, meaning they are not backed by real assets to give them value. Today, US dollars are created when the Federal Reserve adds new dollars to their balance sheet. In 1933 Franklin D Roosevelt removed the US dollar from a gold standard and with Executive Order 6102 made it illegal for Americans to own physical gold. The moment all the physical gold had been purchased from the public, the price of gold was immediately raised by 69%. We pointed out in a previous article that a few privileged Americans were exempt from this order and given permits to personally own physical gold. It would be fascinating to know who they were.

The fiat nature of the US dollar means it can seemingly be created at will because its creation is not predicated upon having physical assets to back it. This year the Federal Reserve announced it intends to follow a policy of “unlimited” quantitative easing by purchasing securities from member banks with funds they create out of “thin air”. Consequently, the Federal Reserve balance sheet has swollen by over $4 trillion in 2020 and they continue to add over $120 billion per month onto their books. The graph below shows the Federal Reserve’s balance sheet and the striking impacts of their quantitative easing policies since the economic crisis in 2008.

Source

The end result of these monetary policies is inflation. In its purest form, inflation occurs when the money supply in an economy is increased. If the fiat money supply within an economy is doubled it devalues all the existing money in that economy by half. If people understood this system, there would be outrage at the devaluation of their savings by the policies of a few wealthy bankers. Inflation is a hidden tax upon those who keep their savings in fiat currency.

Parents are encouraged to open savings accounts for their children to “teach” them the value of saving. Although it is beyond the scope of this article, such marketing tactics benefit private bankers through the process of fractional reserve banking. Because the US dollar is utilized as the world’s reserve currency, dollar inflation has a global impact. It is estimated that the US dollar has lost 96% of its purchasing power since the creation of the Federal Reserve in 1913. After new fiat money is created by the Federal Reserve, it is processed by the banking system and flows directly into banker-controlled corporations. In this way, bankers are able to realize the value of new fiat currency before its inflationary impacts are felt by the rest of the economy.

When we see the price of gold rising, we must remember that gold is valued in US dollars. In reality, the value of physical gold is not rising, it is the value of the dollar that is dropping. Gold maintains its value because it embodies the two core principles of any successful form of currency. It is both limited in supply and universally accepted as a medium of exchange.

In times of inflation or even hyperinflation, gold and other precious metals represent a safe haven to store savings outside the falling value of fiat currencies. The impacts of the Federal Reserve’s current “infinite” quantitative easing policies can only result in inflationary pressure that will decimate what is left of the dollar’s purchasing power. To maintain our savings for the future we must invest in digital assets or precious metals. MetalStream’s MSGLD security token which is backed by and redeemable for gold straddles the two, providing the value of gold with the liquidity of a digital asset.

MetalStream is the issuer of the innovative gold-backed MSGLD token. Please visit our website for more information, and contact [email protected] for enquiries related to the purchase of tokens.


Inflation, Gold And The Dollar was originally published in MetalStream on Medium, where people are continuing the conversation by highlighting and responding to this story.

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