Staff Insights

The U.S. Fortuitously Leads the NatGold™ Industry; Well, More or Less

The journey toward digitizing gold through NatGold™ tokenization has unveiled a unique competitive edge for the United States, thanks to its historic U.S. Patented Land Claims system. Established in the mid-19th century, this system inherently possesses the qualities essential for participating in the NatGold ecosystem, placing the U.S. at a significant, albeit limited, advantage in the global race toward tokenizing mining titles containing National Instrument 43-101 (NI 43-101) certified gold resources.

Go West My Son

Tracing its roots to the General Mining Act of 1872, the U.S. Patented Land Claims system was enacted to encourage the exploration and extraction of mineral resources on public lands. Under this legislation, individuals and corporations could stake a claim and, upon proving the presence of valuable minerals, receive a government-issued patent. This patent conferred ownership of both the land’s surface and the minerals beneath to the claimant. The responsibility for issuing these patents fell to the General Land Office, the forerunner of the modern-day Bureau of Land Management (BLM).

This system played a pivotal role in the mining landscape for over a century, underpinning the development of the American West by facilitating land acquisition for mining. Nevertheless, the latter part of the 20th century saw a shift. Faced with escalating environmental concerns and a heightened appreciation for the communal value of the remaining federal lands, Congress imposed a moratorium in 1994. This decision significantly restrained the issuance of new mineral patents, although it did make provisions for existing claims that had fulfilled all prerequisites prior to the moratorium.

A Serendipitous Convergence with NatGold

The alignment of the U.S. Patented Land Claims with the International NatGold Council’s suggested legislative policies to support a robust NatGold industry could hardly have been better synthesized.

U.S. Patented Land Claims stand out as privately held mining rights, a stark contrast to public lands where mining rights are typically subject to lease or license. These claims confer ownership of both the land’s surface and the valuable minerals beneath, allowing the holders rather than the state to dictate the terms of mineral resource management. Furthermore, there are no ongoing fees to the government to maintain these titles in good standing.

What sets these claims apart is their fully transferable nature, allowing for purchase, sale, or inheritance. This transferability ensures a robust investment and development platform. The claims’ perpetuity means they remain in force indefinitely, without reverting to government control, a key benefit for the NatGold industry, as it guarantees the seamless transfer of titles necessary for digital tokenization.

Financially, the burden on patented land claim owners is light, with property taxes often amounting to mere hundreds of dollars annually. This minimal financial commitment further bolsters their appeal as prime candidates for tokenization into NatGold coins.

A Strategic Path Forward

While the benefits of the existing system are clear for current U.S. Patented Land Claim holders with titles containing National Instrument 43-101 (NI 43-101) certified gold resources, it leaves other mining entities and newcomers eager to partake in the anticipated NatGold green rush on the sidelines.

The potential of the U.S. Patented Land Claims system as a unique lever in the digital gold sector is undeniable. However, to fully tap into this reservoir of opportunity, the U.S. must rethink its stance on the moratorium, consider adopting non-extraction digital mining policies as a prerequisite to registration, or craft entirely new legislation tailored to these ends, similarly to that proposed by the International NatGold Council for the rest of the world.

Lifting the moratorium and revising the legislative framework to prioritize non-production digital mining could unlock vast potentials of federal lands for a new era of the digital gold rush. This shift not only promises significant tax revenue and a surge in green employment opportunities but also paves the way for a more inclusive, sustainable future in mining. By embracing these changes, the United States could amplify its standing as a global leader in ESG innovation and industrial modernization while unlocking a significant new contributor to the country’s economic growth.

While other countries on the cusp of implementing the pro-digital gold mining policies advocated by the International NatGold Council, the United States has already inadvertently staked its leadership claim in the burgeoning worldwide NatGold industry through its U.S. Patented Land Claim legacy program. The question now is whether the U.S. will act quickly enough to maintain its fortuitous lead.

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FAQs

What is Tokenization?2024-04-20T23:35:52+00:00

Tokenization is the process of converting rights to an asset into a digital token on a blockchain. These digital tokens represent ownership or a claim on the asset, enabling it to be traded or managed on digital platforms. This innovative approach offers a secure and efficient means of handling assets, utilizing the transparency, immutability, and distributive nature of blockchain technology.

In the context of the NatGold model, tokenization involves creating digital tokens that represent ownership of a certain amount of gold resources, as certified by NI 43-101 reports. Each NatGold coin is a digital representation of gold resources, making the intrinsic value of gold easily transferable and accessible without the need for physical handling. This process democratizes access to gold as an investment, making it possible for individuals and institutions to invest in gold resources with ease and confidence.

Tokenization transforms traditional asset management and investment by breaking down barriers to entry, reducing costs associated with transactions and storage, and enhancing liquidity in the market. By leveraging blockchain technology, tokenization introduces a new era of asset utilization and investment, opening up opportunities for innovation and value creation.

How significantly has Canada’s NI 43-101 Technical Report influenced the design of CRIRSCO’s International Reporting Template (IRT)?2024-04-20T23:41:36+00:00

Canada’s National Instrument 43-101 (NI 43-101) has had a significant influence on the design of CRIRSCO’s International Reporting Template (IRT). Developed by the Canadian Securities Administrators, NI 43-101 sets stringent guidelines for the public disclosure of scientific and technical information related to mineral projects, which emphasize transparency, accountability, and detailed reporting. The comprehensive nature of NI 43-101, particularly its rigorous requirements for Qualified Persons and its structured approach to defining mineral resources and reserves, served as a model for many of the principles incorporated into the IRT.

This influence ensures that the IRT aligns with the high standards of reporting established by NI 43-101, facilitating consistency and comparability among international mining reports and aiding in the global harmonization of mineral resource and reserve reporting standards. This alignment is crucial for fostering trust and confidence among investors and regulators in the mining industry worldwide.

What does ESG stand for?2024-04-21T15:19:38+00:00

ESG stands for Environmental, Social, and Governance. These three broad categories are used to evaluate the sustainability and ethical impact of an investment in a company or business. Here’s what each component generally focuses on:

Environmental criteria consider how a company performs as a steward of nature. This includes its energy use, waste, pollution, natural resource conservation, and treatment of animals. The criteria can also help evaluate any environmental risks a company might face and how the company is managing those risks.

Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. This can include labor practices, employee health and safety, and the company’s impact on the communities where it operates.

Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. This aspect looks into how a company is governed, particularly in terms of transparency, accountability, and business ethics.

These factors are increasingly important to investors, as they can affect a company’s profitability, risk profile, and overall sustainability.

What is the primary mission of the International NatGold Council?2024-04-20T23:27:01+00:00

The International NatGold Council’s primary mission is to develop legislative policies and set integrity standards for the NatGold industry, focusing on the comprehensive tokenization and monetization ecosystem. This mission is vital for cultivating a robust NatGold industry characterized by the utmost monetary integrity for NatGold coins.

In addition to its policy-making activities, the Council is committed to globally promoting the NatGold marketplace. Through strategic marketing and targeted media campaigns, it seeks to inform the worldwide community about the exceptional advantages of NatGold, establishing it as the leading asset-backed digital currency.

What is the Fifth Pachakuti, and what does it have to do with evolving ESG-consciousness?2024-04-21T16:00:14+00:00

The Fifth Pachakuti, as foretold by the Inca civilization, represents a period of profound transformation that began in 1992, marking the end of an era and the emergence of a new one characterized by balance, harmony, and sustainability. This concept resonates today as we face global environmental crises and a deeper understanding of our interconnectedness with nature. In Incan prophecy, a Pachakuti is a 500-year cycle of renewal, and the Fifth Pachakuti symbolizes the time when the path of the Eagle—representing mind, science, and industrialization—reunites with the path of the Condor, which symbolizes heart, intuition, and a spiritual connection to nature. This era is envisioned as a convergence of these historically divergent paths, fostering a united consciousness that is essential for global sustainability.

This transformative period aligns with the current shift towards Environmental, Social, and Governance (ESG) principles, reflecting a global move towards more sustainable, equitable, and environmentally conscious practices. The reawakening to these values under the Fifth Pachakuti supports the transition from traditional, often destructive economic activities like physical gold mining to more sustainable approaches such as those advocated by the International NatGold Council. This council promotes the tokenization of gold, preserving natural resources and minimizing environmental impact, which embodies the ESG-conscious change envisioned in this new era. This alignment suggests that our contemporary environmental and social reforms are not just modern necessities but are part of a larger, cyclic transformation echoing ancient wisdom—a true manifestation of the Fifth Pachakuti.