Staff Insights

Gold: A 6,000-Year Legacy Coming Back as NatGold™

Gold’s story as a cornerstone of economic wealth and stability is as ancient as civilization itself. For over 6,000 years, this lustrous metal has not only adorned monarchs and embellished sacred temples but has also served as the ultimate symbol of wealth and a medium of exchange. From the ancient Egyptians to modern financial systems, gold has played a pivotal role in shaping economic practices and policies.

The journey of gold as a universal standard of wealth began in ancient Mesopotamia, where the first transactions using gold as currency were recorded. Civilizations such as the Egyptians, renowned for their immense treasures of gold, used it extensively in trade, jewelry, and as offerings to the gods, underscoring its intrinsic value across cultures and eras.

It was the Lydians, in the 7th century BC, who first introduced gold coins, marking a significant evolution in the use of gold as money. This innovation facilitated trade, bolstered economies, and laid the groundwork for gold as a naturally elected monetary standard. As empires rose and fell, gold remained a constant, reliable measure of wealth and a medium for international trade.

The gold standard, established in the 19th century, further cemented gold’s role in the global economy, linking currencies directly to gold and ensuring a stable, universal value for money. However, this system also limited the flexibility desired by bankers eager to impart a much more elastic “inflationary” monetary policy.

When understanding the dollar, it’s important to know that it used to be completely backed by a gold reserve. Following the lead of Great Britain who dropped the gold standard in 1931, America dropped it two years later. This controversial action served its purpose of preventing people from hoarding gold, which was a common currency prior to 1933. However, it also gave the Federal Reserve more power than ever over the value of the American dollar.

Then just a decade later, the U.S. dollar was anointed the world’s primary reserve currency by virtue of the Bretton Woods Agreement in 1944. At Bretton Woods, central bankers from around the world agreed to fix their individual currencies to the dollar. This means that if you were a central bank anywhere in the world and someone wanted to trade in their local currency for a different one, then you could get that currency from your country’s central bank.

Then the ultimate act to remove any sense of gold backing came on August 15, 1971, when President Richard Nixon announced the suspension of gold convertibility, severing the direct link between gold and the U.S. dollar. This decision marked the end of the gold standard era and the beginning of the US dollar’s worldwide dominance.

Thus, in a period of less than 40 years, an elite banking cartel effectively wiped out 6,000 years of a gold money system and replaced it with a mandated global dollar-based system, which is nothing more than a license to create debt instruments. Every dollar in circulation is debt, backed by the faith one has in the US government, and ultimately its taxpayers, to back up its existence. In contrast with gold which is a debt to no one, the dollar is a debt pledge that went from having the backing of an unelected, naturally selected form of asset backing to a backing completely reliant on faith.

The transition to fiat money, backed not by gold but by government decree, granted central banks unprecedented control over monetary policy. Since departing from the gold standard, the purchasing power of fiat currencies like the U.S. dollar has been significantly eroded. The value of the dollar has been declining steadily since Nixon’s act and in fact, has lost about 95% of its purchasing power.

Global debt, fueled by easy monetary policies and the absence of gold-backed currency constraints, has soared, highlighting concerns over financial stability and sustainability. In reflecting on gold’s legacy, it’s evident that its role transcends mere physical value; it embodies stability, trust, and continuity in an ever-changing world. The end of the gold standard era marked the beginning of an era of unrestrained debt creation, propelled by politicians’ ever-expanding appetite to introduce new spending programs. These programs are music to the ears of their banking allies, who stand to gain from the expansion of debt and the ensuing interest income.

Ironically, the issue was never gold itself. The argument against it was primarily its inelasticity as a form of money, attributed to the lengthy and costly process of mine construction and gold extraction, which made it seemingly inefficient in responding to increased demands for money supply. This perspective fueled much of the rationale behind abandoning the gold standard, especially during the Great Depression.

Today, in this era of widespread access to information and robust debate enabled by the internet, people are becoming increasingly knowledgeable about the dollar and the workings of the global monetary system. This enlightenment has sparked a surge in interest in alternative currencies, propelled by a growing disillusionment with the faith-based dollar.

Ironically, throughout the 6,000-year history of gold’s prominence, numerous items have been experimented with as monetary substitutes, from beads and seashells to tulips. Similarly, the current trend in digital assets has seen a plethora of experiments, from assets backed by algorithms to avocados. Yet, the natural solution has always been right before us, awaiting its revival. The convergence of an ESG-conscious approach through the monetization of certified in-ground gold resources to create NatGold promises a resurgence of gold as the quintessential form of natural money, poised to advance human progress and offer everyone a reliable and stable store of value.

Furthermore, NatGold provides a far more elastic response to the needs of the money supply than extracted gold. For starters, the supply of NatGold vastly exceeds that of certified gold resources that can be economically extracted. Moreover, the process of digital mining is nearly instantaneous, unlike the physical extraction process, which demands significant capital investment and time.

As the world seeks a viable alternative to the faltering debt-based, fiat money system, with the US dollar at its core, the International NatGold Council is determined to bring NatGold into the global dialogue. We are confident that gold, in the form of NatGold, will reclaim its rightful place as the foundational element of our monetary system.

Gold’s story as a cornerstone of economic wealth and stability is as ancient as civilization itself. For over 6,000 years, this lustrous metal has not only adorned monarchs and embellished sacred temples but has also served as the ultimate symbol of wealth and a medium of exchange. From the ancient Egyptians to modern financial systems, gold has played a pivotal role in shaping economic practices and policies.

The journey of gold as a universal standard of wealth began in ancient Mesopotamia, where the first transactions using gold as currency were recorded. Civilizations such as the Egyptians, renowned for their immense treasures of gold, used it extensively in trade, jewelry, and as offerings to the gods, underscoring its intrinsic value across cultures and eras.

It was the Lydians, in the 7th century BC, who first introduced gold coins, marking a significant evolution in the use of gold as money. This innovation facilitated trade, bolstered economies, and laid the groundwork for gold as a naturally elected monetary standard. As empires rose and fell, gold remained a constant, reliable measure of wealth and a medium for international trade.

The gold standard, established in the 19th century, further cemented gold’s role in the global economy, linking currencies directly to gold and ensuring a stable, universal value for money. However, this system also limited the flexibility desired by bankers eager to impart a much more elastic “inflationary” monetary policy.

When understanding the dollar, it’s important to know that it used to be completely backed by a gold reserve. Following the lead of Great Britain who dropped the gold standard in 1931, America dropped it two years later. This controversial action served its purpose of preventing people from hoarding gold, which was a common currency prior to 1933. However, it also gave the Federal Reserve more power than ever over the value of the American dollar.

Then just a decade later, the U.S. dollar was anointed the world’s primary reserve currency by virtue of the Bretton Woods Agreement in 1944. At Bretton Woods, central bankers from around the world agreed to fix their individual currencies to the dollar. This means that if you were a central bank anywhere in the world and someone wanted to trade in their local currency for a different one, then you could get that currency from your country’s central bank.

Then the ultimate act to remove any sense of gold backing came on August 15, 1971, when President Richard Nixon announced the suspension of gold convertibility, severing the direct link between gold and the U.S. dollar. This decision marked the end of the gold standard era and the beginning of the US dollar’s worldwide dominance.

Thus, in a period of less than 40 years, an elite banking cartel effectively wiped out 6,000 years of a gold money system and replaced it with a mandated global dollar-based system, which is nothing more than a license to create debt instruments. Every dollar in circulation is debt, backed by the faith one has in the US government, and ultimately its taxpayers, to back up its existence. In contrast with gold which is a debt to no one, the dollar is a debt pledge that went from having the backing of an unelected, naturally selected form of asset backing to a backing completely reliant on faith.

The transition to fiat money, backed not by gold but by government decree, granted central banks unprecedented control over monetary policy. Since departing from the gold standard, the purchasing power of fiat currencies like the U.S. dollar has been significantly eroded. The value of the dollar has been declining steadily since Nixon’s act and in fact, has lost about 95% of its purchasing power.

Global debt, fueled by easy monetary policies and the absence of gold-backed currency constraints, has soared, highlighting concerns over financial stability and sustainability. In reflecting on gold’s legacy, it’s evident that its role transcends mere physical value; it embodies stability, trust, and continuity in an ever-changing world. The end of the gold standard era marked the beginning of an era of unrestrained debt creation, propelled by politicians’ ever-expanding appetite to introduce new spending programs. These programs are music to the ears of their banking allies, who stand to gain from the expansion of debt and the ensuing interest income.

Ironically, the issue was never gold itself. The argument against it was primarily its inelasticity as a form of money, attributed to the lengthy and costly process of mine construction and gold extraction, which made it seemingly inefficient in responding to increased demands for money supply. This perspective fueled much of the rationale behind abandoning the gold standard, especially during the Great Depression.

Today, in this era of widespread access to information and robust debate enabled by the internet, people are becoming increasingly knowledgeable about the dollar and the workings of the global monetary system. This enlightenment has sparked a surge in interest in alternative currencies, propelled by a growing disillusionment with the faith-based dollar.

Ironically, throughout the 6,000-year history of gold’s prominence, numerous items have been experimented with as monetary substitutes, from beads and seashells to tulips. Similarly, the current trend in digital assets has seen a plethora of experiments, from assets backed by algorithms to avocados. Yet, the natural solution has always been right before us, awaiting its revival. The convergence of an ESG-conscious approach through the monetization of certified in-ground gold resources to create NatGold promises a resurgence of gold as the quintessential form of natural money, poised to advance human progress and offer everyone a reliable and stable store of value.

Furthermore, NatGold provides a far more elastic response to the needs of the money supply than extracted gold. For starters, the supply of NatGold vastly exceeds that of certified gold resources that can be economically extracted. Moreover, the process of digital mining is nearly instantaneous, unlike the physical extraction process, which demands significant capital investment and time.

As the world seeks a viable alternative to the faltering debt-based, fiat money system, with the US dollar at its core, the International NatGold Council is determined to bring NatGold into the global dialogue. We are confident that gold, in the form of NatGold, will reclaim its rightful place as the foundational element of our monetary system.

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FAQs

What is the NatGold Bilateral Bridge?2024-04-21T19:42:36+00:00

The NatGold Bilateral Bridge is a pivotal technological infrastructure within the NatGold ecosystem, designed by OroEx Corp. to connect the private ledger of the NatGold Digital Vault with the NatGold NatGold Multichain where NatGold coins are actively stored, distributed, and traded globally. This bridge plays a critical role by facilitating the seamless and secure transfer of NatGold coins from their post-tokenization crediting in the Digital Vault to their respective public blockchain addresses.

Essential to both operational oversight and regulatory compliance, the NatGold Bilateral Bridge utilizes advanced technologies such as smart contracts, APIs, and cryptographic security measures. These tools ensure that the transfers and tracking of NatGold coins are conducted securely and efficiently, thereby preserving the integrity and trustworthiness of the digital asset management system. This infrastructure not only supports the smooth functioning of the NatGold ecosystem but also enhances its capacity for strategic decision-making and regulatory adherence.

What is a NI 43-101 certified gold resource report?2024-04-20T23:30:24+00:00

A NI 43-101 certified gold resource report is a comprehensive document independently prepared by “Qualified Persons” who serve as auditors of gold resource estimates, adhering to the standards set by the Canadian National Instrument 43-101 (Standards of Disclosure for Mineral Projects). This regulatory framework ensures that the public disclosure of scientific and technical information about the existence of gold resources is accurate, reliable, and follows consistent standards.

The report provides detailed information on a mineral project’s geology, exploration results, drilling data, and gold resource estimation. Specifically for gold, the report outlines the quantity, grade (quality), and other geological characteristics of the gold deposits within a project. It categorizes the resources into Measured, Indicated, and Inferred resources based on the level of geological certainty of the gold’s existence.

NI 43-101 certified gold resource reports are essential for investors and stakeholders in the mining industry, providing a trusted basis for investment decisions and ensuring transparency and accountability in public disclosures about mineral properties.

Why are NI 43-101 Technical Reports automatically accepted by the U.S. Securities and Exchange Commission (SEC) under Regulation S-K 1300, whereas technical reports from other nations are not?2024-04-20T23:32:08+00:00

NI 43-101 Technical Reports are automatically accepted by the SEC under Regulation S-K 1300 due to their strict adherence to the regulation’s rigorous standards, which prioritize detailed, transparent, and reliable disclosures of mineral resources and reserves. These reports are developed by the Canadian Securities Administrators and set a high standard for the public disclosure of scientific and technical information concerning mineral projects. This includes stringent requirements for the qualifications and responsibilities of “Qualified Persons” who verify the reports, ensuring that the disclosed information is both accurate and verifiable.

In contrast, reports from other standards like JORC (Australia) or SAMREC (South Africa) might require additional reconciliation to align with S-K 1300. While these standards are internationally aligned to the CRIRSCO templates, which share common core definitions and guidelines with S-K 1300, they often have slight variations in definitions and reporting criteria. These differences mean that technical reports from these and other non-Canadian jurisdictions may need to demonstrate their compliance with S-K 1300’s specific requirements through detailed reconciliation, making them not automatically acceptable like NI 43-101 reports.

What are the gold resource exchange ratios employed in the NatGold tokenization model?2024-04-20T23:36:12+00:00

The gold resource exchange ratios in the NatGold tokenization model reflect the NatGold Council’s approach to categorizing gold resources based on their certification level: Measured, Indicated, and Inferred. These ratios determine the number of NatGold coins created for each ounce of gold resource, adhering to industry-standard certifications to maintain the integrity and reliability of NatGold as a digital asset:

Measured Resources: With the highest degree of certainty and detail in gold existence estimates, Measured resources are exchanged at a 20% tokenization discount. Thus, one ounce of Measured resources is equivalent to 0.80 of a NatGold coin.

Indicated Resources: Positioned between Measured and Inferred in terms of accuracy, Indicated resources undergo a 60% tokenization discount. This translates each ounce of Indicated resources to 0.40 of a NatGold coin.

Inferred Resources: As the category with the lowest precision, Inferred resources are allocated an 80% discount in tokenization, valuing every ounce at 0.20 of a NatGold coin.

This structured approach ensures that the NatGold tokenization model is grounded in established mining and financial practices, offering a trustworthy and stable digital asset based on gold’s intrinsic value.

Isn’t silver considered to have monetary utility, similar to gold? What happens when there are certified silver resources in addition to the primary deposit of certified gold resources? Is the silver given any gold equivalent value?2024-05-01T17:22:10+00:00

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.