Staff Insights

The NatGold™ Silver Connection

As we explore the relationship between gold and silver, it’s clear that their connection begins underground and extends above ground. Where gold resources are found, it is also common to find silver within the same ore body, or deposit. They are like kindred metallic spirits. Above ground, both continue to share their prehistoric journey together, this time serving as monetary stores of wealth.

Silver, known as the “common man’s gold,” has historically facilitated smaller transactions, while gold was often used for larger commercial exchanges. Throughout much of the world’s monetary history, both metals have worked side by side to support human commercial progress.

In fact, although gold has a longer documented history as a store of wealth, the first metal actually used as a currency was silver, more than 4,000 years ago, when silver ingots were first used in trade. During the heyday of the Athenian empire, the city’s silver tetradrachm was the first coin to achieve “international standard” status in Mediterranean trade. It’s also a fact that in Ancient Rome, silver experienced a brief period when it was more valuable than gold after Rome acquired large amounts of gold plunder. In the 19th century, Japan sought silver so eagerly that they exchanged gold for silver at a rate of one to three.

Over time, the gold-silver ratio has widened, largely because silver’s use in technology and other industrial applications has increased, while gold continues to primarily serve as a store of monetary wealth. This has caused gold prices to spike during periods of economic and political turmoil, resulting in high gold-silver ratios in today’s uncertain global climate. Historically, the gold-silver ratio was around 47:1 for most of the last century, but it has averaged about 60:1 over the past 20 years, with recent spikes often exceeding 80:1 and even reaching 100:1.

Even though silver’s utility as a store of wealth has been overshadowed by its industrial uses, which now account for about 60% of its demand, there is still strong global investment demand for it. Where certified silver resources exist as a secondary resource within a certified gold deposit, it only makes sense to recognize its important role as a store of monetary wealth, albeit much less pronounced than for gold, whose primary utility continues to be as a monetary store of wealth—not for industrial usage.

Therefore, while NatGold primarily focuses on tokenizing NI 43-101 deposits with certified gold resources, deposits containing NI 43-101 certified silver resources as a secondary resource can be converted to a certified gold equivalent and incorporated alongside the primary gold resource.

For the NatGold digital mining model, the International NatGold Council has set the gold-silver ratio at 90:1. This means one ounce of certified gold resources is equivalent to 90 ounces of certified silver resources within the same resource classification—whether inferred, indicated, or measured. For example, 90,000 ounces of certified indicated silver resources would be converted to 1,000 ounces of gold equivalent indicated resources. This allows the title owner to then tokenize this amount of gold equivalent resources into NatGold coins using the established tokenization exchange ratios, which vary across the three resource categories. The gold-silver exchange ratio remains constant across all resource categories, simply converting silver resources into the equivalent category of gold resources at a 90:1 ratio.

In summary, the NatGold digital mining model recognizes the millennia-long history of both gold and silver in anchoring the world’s monetary systems and commercial progress. For us, these intrinsically valuable metals go hand in hand. Although silver primarily serves industrial purposes, making it challenging to adopt a digital mining policy for primary silver deposits, gold is ideally suited for ESG-friendly digital mining to unlock its monetary value and circulate as the world’s premier intrinsically backed currency.

The key distinction we make is that if a gold deposit being digitally mined happens to also contain NI 43-101 certified silver resources, these are recognized in their gold equivalent form and their value unlocked in the form of NatGold coins. In fact, by including the silver resources, NatGold coins represent the closest monetary connection ever shared between gold and silver throughout their thousands of years of monetary history.

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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.

Do U.S. Patented Land Claims include both surface and subsurface rights, and can these rights be severed to eliminate property tax obligations? Why is this important for NatGold tokenization?2024-04-21T13:18:45+00:00

U.S. Patented Land Claims typically include both surface and subsurface rights, granting the owner full control over the entire property. However, it is possible for these rights to be severed, meaning that the surface rights and subsurface mineral rights can be owned separately. This process involves legally separating the ownership of the surface land from the mineral rights beneath it.

Once severed, the subsurface mineral rights can be sold, leased, or retained independently of the surface rights. This allows different parties to own and manage these distinct interests separately. Severing rights is a legal process that must comply with state and federal laws, and it often involves formal agreements and registrations to clearly define the split in ownership.

Severing the subsurface rights from the surface rights can be particularly advantageous for several reasons. For one, it allows the owner to retain the valuable subsurface mineral rights while potentially selling or leasing the surface land. More importantly, from a financial perspective, separating these rights can significantly impact the financial obligations associated with the property. In the context of U.S. Patented Land Claims, the only financial obligation typically tied to unified ownership is property taxes, which, though often minimal, still represent a recurring cost.

For tokenization purposes in the NatGold ecosystem, where no ongoing fees are acceptable to avoid devaluation of the NatGold coins from their 100% certified gold resource backing, it is imperative for owners to sever the subsurface rights containing the certified gold resources. By doing so, they effectively separate these rights from the surface rights, thus severing the title from any ongoing property taxes. This separation ensures that the subsurface rights, now free from the burden of property taxes, remain a pure asset backed solely by the certified resources they contain, ideal for use within the NatGold framework.

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 the NatGold Integrity Trust?2024-04-21T19:39:58+00:00

The NatGold Integrity Trust, established by the International NatGold Council and incorporated in Delaware, plays a critical role in the NatGold ecosystem. As the pivotal entity overseeing the tokenization of NatGold mining titles into NatGold coins, the Trust also holds custody of these titles, ensuring the integrity and transparency of the process.

The Trust’s operation involves a meticulous approval process for tokenizing NatGold mining titles, managed by three independent trustees appointed by the International NatGold Council. These trustees, experts in securities law and NI 43-101 resource reporting, conduct their roles without direct financial interests in the industry participants, underscoring the Trust’s commitment to unbiased and ethical governance.

Upon approval, the NatGold Integrity Trust deposits the mining titles, corresponding NI 43-101 Technical Reports, and accompanying due diligence materials into the NatGold Digital Vault. Here, the certified gold resources are digitally tokenized into NatGold coins based on standardized ratios set by the International NatGold Council. This ensures that every NatGold coin is backed by verified gold resources, maintaining the system’s integrity and offering a transparent digital asset backed by tangible value.

What are the distinct roles of the Canadian Securities Administrators (CSA) and the Canadian Institute of Mining, Metallurgy, and Petroleum (CIM) in relation to NI 43-101 reports?2024-04-20T23:31:01+00:00

The roles of the Canadian Securities Administrators (CSA) and the Canadian Institute of Mining, Metallurgy, and Petroleum (CIM) in the context of National Instrument 43-101 (NI 43-101) are distinct yet complementary:

1. Canadian Securities Administrators (CSA):

Regulatory Role: The CSA is responsible for regulating securities laws in Canada, including the enforcement of NI 43-101. Its primary function is to ensure compliance with the rules and standards set for the public disclosure of scientific and technical information on mineral projects.

Investor Protection: The CSA aims to protect investors by ensuring that the disclosures about mineral projects are truthful, complete, and comply with the regulations, thus helping investors make informed decisions.

2. Canadian Institute of Mining, Metallurgy, and Petroleum (CIM):

Standards Development: The CIM is instrumental in developing the definitions and standards that are incorporated into NI 43-101. They provide the framework and guidelines used to report on mineral resources and reserves.

Expertise and Guidance: CIM offers guidance based on the expertise of professionals in the mining industry. This includes best practices in documentation and reporting that companies must follow to align with NI 43-101 standards.Essentially, while the CIM provides the technical definitions and standards, the CSA enforces these standards within the legal framework of the Canadian securities market, ensuring that all public disclosures meet these established criteria. This system ensures that both the technical accuracy and regulatory compliance are maintained in the reporting of mineral projects.