Staff Insights

It’s extremely common for a gold deposit to include significant amounts of other metals—both precious and otherwise—alongside the gold. Silver is one such metal that frequently occurs with gold and has a rich monetary tradition alongside its “big monetary brother.”

Silver has always played an important monetary role throughout history. Sometimes referred to as the “common man’s gold,” silver was historically used for more routine commercial transactions of a smaller nature, whereas gold fulfilled larger transactions. The true monetary history of the world is bimetallic: gold and silver.

One significant difference between gold and silver is that over time, the monetary utility of silver became overshadowed by industrial usage, which accounts for about 60% of its utility. Thus, its monetary utility is no longer its primary utility, whereas with gold, its store of wealth utility remains its primary function.

Because silver plays an important role in the global investment world, with as much as 40% of its demand for investment and store of wealth purposes, it is important to recognize their value. Therefore, in models like NatGold, certified silver resources are valued on their gold equivalent ratio basis. This means that the NI 43-101 certified silver resource is converted into its gold equivalent value within the same resource category; inferred, indicated, or measured resources.

It is important to note that NatGold’s legislative policies are focused on gold as the primary element of tokenization. The silver resources to which we are referring would be a by-product resource that occurs along with the primary certified gold resource.

FAQs

Who is OroEx Corp., and what is their role within the NatGold ecosystem?2024-04-21T19:10:09+00:00

OroEx Corp., based in New York, NY, is the founder and exclusive operator of the NatGold ecosystem, a comprehensive hybrid ledger/blockchain-based platform that facilitates the tokenization, storage, distribution, and global trading of NatGold coins within a DeFi framework. OroEx ensures that all components of its operations are fully auditable, transparent, and strategically managed.

The NatGold ecosystem encompasses several key components:

NatGold Digital Vault: Actively facilitates the tokenization process and safeguards all related documentation by securely recording and managing tokenized assets.

NatGold Bilateral Bridge: Facilitates seamless interactions between the ledger system and blockchain networks.

NatGold Multichain: Supports the global distribution, storage, and trading of NatGold coins.

NatGold Media DApp: Delivers continuous communication and updates on the NatGold industry within the DeFi universe, keeping stakeholders informed and engaged.

Each component works in concert to ensure a secure, transparent, and regulatory compliant environment, making the NatGold ecosystem the essence of the global NatGold industry.

Why Must NatGold Legislation Ensure Perpetual-Like Protection for Titles?2024-04-20T23:28:00+00:00

Perpetual or perpetual-like title protection in NatGold legislation is vital to ensure that NatGold coins, which are backed by certified green gold resources, remain a reliable store of value. Traditional mining titles are generally issued by governments for fixed periods, such as 20 or 30 years, allowing companies to explore and exploit subsurface mineral rights. However, for a monetary asset like NatGold coins, the backing asset—certified gold resources—must not expire. Money, unlike perishable goods, should not have a shelf life.

Perpetual title protection ensures that the value represented by NatGold coins is enduring and stable, thereby upholding the monetary integrity of NatGold as a dependable and long-lasting store of value. This approach aligns with the foundational principles of sustainable and ethical finance, ensuring that NatGold remains a viable and attractive option for investors and stakeholders in the long term.

What is the NatGold Digital Vault?2024-04-21T19:41:01+00:00

The NatGold Digital Vault, operated by OroEx Corp., is a crucial component of the NatGold ecosystem, specifically engineered to tokenize, securely manage, and store NatGold Coins before their distribution, storage, and trading on the NatGold Multichain. These coins result from the tokenization of mining titles containing NI 43-101 certified gold resources. The vault utilizes ledger-based technology that incorporates some blockchain principles, such as ledgering and digital signatures. However, it remains a closed system to ensure controlled access and enhanced security, distinguishing it from public blockchains, which are accessible by the general public.

This Digital Vault is designed with a robust security architecture to safeguard sensitive information. It operates on a closed ledger system, which allows for stringent control over all transactions related to the creation and distribution of NatGold Coins. To maintain data integrity and prevent tampering, each transaction is securely hashed using advanced cryptographic algorithms. Additionally, comprehensive audit trails capture detailed logs of all operations, enhancing the vault’s compliance and auditability.

Access to the NatGold Digital Vault is tightly regulated through sophisticated authentication mechanisms, ensuring that only authorized personnel can interact with or access the system. This is further supported by role-based access control, which assigns different levels of permissions based on the specific roles of the participants. The physical and network security measures in place, including encryption of sensitive data and regular security audits, ensure that the vault remains not only compliant but also resilient against unauthorized access and data breaches. This combination of privacy, security, and transparency makes the NatGold Digital Vault a pivotal element in maintaining the integrity and trustworthiness of the NatGold ecosystem.

Why does NatGold only recognize certified gold resources and not certified gold reserves when determining tokenization ratios?2024-04-20T23:34:04+00:00

The essence of NatGold’s valuation lies in its innovative approach to digital mining, which capitalizes on the inherent value of gold’s existence rather than its physical retrievability. This method relies on the assessment of certified gold resources, which quantify the presence of gold irrespective of its extraction feasibility. Conversely, certified gold reserves evaluate the economic viability of extracting these resources, a consideration irrelevant to NatGold’s mission. The International NatGold Council upholds a philosophy that sidesteps the environmentally and financially costly process of physical extraction in favor of a more sustainable, digital approach.

By choosing to tokenize gold based on its certified existence, NatGold challenges the traditional mining paradigm, rendering the debate over extraction viability moot. This shift not only aligns with environmental conservation efforts but also redefines the utility of gold as a store of wealth. It renders the act of extracting gold only to secure it in vaults both illogical and wasteful. Through digital tokenization, NatGold ensures that gold can fulfill its monetary role while remaining undisturbed in the earth, showcasing a practical commitment to ESG principles and making a clear case for the absurdity of conventional extraction methods.

How is the baseline intrinsic value of NatGold calculated?2024-05-18T12:55:00+00:00

How is the baseline intrinsic value of NatGold calculated?

The baseline intrinsic value of NatGold is calculated using a global per ounce average profit comparative methodology developed by the International NatGold Council. This method assesses the profit potential of NatGold by comparing the global average cost of gold production, as indicated by the All-In Sustaining Cost (AISC), against the current market price of gold. This approach provides a robust framework for establishing the minimum intrinsic value of NatGold coins, emphasizing their potential profitability in the global market.

Calculating Production Costs: The All-In Sustaining Cost (AISC) is used as a key metric in this comparison. AISC is a global weighted average calculated quarterly by the World Gold Council, based on the reported costs of each publicly reporting mining company for that period. This figure reflects the comprehensive cost faced by publicly reporting gold mining companies to mine, refine, and market one Troy ounce of gold.

Above Ground Market Price Reference: The market price used in this calculation is derived from the latest daily average price for a Troy ounce of gold, as reported by authoritative sources like the London Bullion Market Association and the NYMEX spot gold price.

Intrinsic Price Value Baseline: For example, employing a 90-day AISC of US$1,342 for Q4, 2023, and a hypothetical market price of US$2,200 per ounce, the intrinsic profitability is calculated by subtracting the most recent quarterly global weighted average AISC from the market price. In this instance, the average global profit would be $858 per ounce. This serves as the baseline intrinsic value of gold before the expenditure of US$1,342 to physically extract the gold via traditional mining methods.

NatGold’s approach diverges from traditional practices by focusing exclusively on digital mining certified gold resources in an ESG-friendly way. Essentially, the intrinsic baseline value of an ounce of NatGold is theoretically equal to the average per ounce profit realized by global gold producers, which is calculated by subtracting the average global cost of extraction from the prevailing market price of gold.

This positions NatGold as a sustainable crypto-commodity, capable of attracting a significant ESG premium, potentially even surpassing traditional gold’s market value as global sustainability awareness increases. This valuation transcends conventional production cost-profit analyses, advocating for NatGold’s price to be independently determined by its own merits as a sustainable and innovative financial asset.