A traditional gold and silver investment, but better.
AUS & AGS is backed by physical gold and is allocated down to the serial number of each individual bar. Because AUS & AGS operates on the Ethereum blockchain, it is also instantly transferable globally. The allocated ownership moves with the token transfer, which makes trading of allocated gold easier and faster than ever.
- 1.Once the Tokens (or fraction thereof) has been purchased by a Token Holder, Ainslie Wealth no longer holds any title or interest in or to the Bullion. All legal title to the Bullion is held by the Token Holder.
- 2.Once the Bullion is delivered to GSSC, GSSC does not obtain any title or interest in or to the Bullion. GSSC merely accepts delivery of and stores the Bullion on the instruction of the Token Holder and the Token Holder retains all legal title to the Bullion.
- 3.GSSC undertakes to:
- 1.hold the Bullion in a secure facility or vault;
- 2.not to deal with the Bullion (including leasing to a third party) other than in accordance with instructions from the Token Holder pursuant to this Agreement;
- 3.ensure that the Bullion remains free from any Security Interests;
- 4.have in place policies and procedures to ensure that the Bullion is not and cannot be used for any purpose other than to satisfy delivery of Bullion to a Token Holder upon exercise of their right to redeem Tokens; and
- 5.within 5 Business Days of receiving a written request from the Token Holder, provide the Token Holder with the most recent report of factual findings provided by the assurance firm to GSSC.
- 4.No fees are payable by Token Holder to GSSC in respect of insurance or storage of the Bullion.
Due to the digital and programmable nature of the smart contract, AUS & AGS are easy to convert, trade or use in many other ways. Programmable gold creates significant new functionality in the trading world. AUS & AGS are ERC20 tokens, meaning they can be used on dApps on the Ethereum blockchain.
A dApp operates on a blockchain or peer-to-peer network of computers. It enables users to engage in transactions directly with one another as opposed to relying on a central authority. The user of a dApp will pay the developer an amount of cryptocurrency to download and use the program's source code. The source code is known as a smart contract, which allows users to complete transactions without revealing personal information.
This means that AUS & AGS are highly interoperable on the Ethereum network. AUS & AGS can be integrated ANYWHERE with the following benefits:
- Zero downtime – Once the smart contract is deployed on the blockchain, the network as a whole will always be able to serve clients looking to interact with the contract. Malicious actors, therefore, cannot launch denial-of-service attacks targeted towards individual dapps.
- Privacy – You don’t need to provide real-world identity to deploy or interact with a dapp.
- Resistance to censorship – No single entity on the network can block users from submitting transactions, deploying dapps, or reading data from the blockchain.
- Complete data integrity – Data stored on the blockchain is immutable and indisputable, thanks to cryptographic primitives. Malicious actors cannot forge transactions or other data that has already been made public.
- Trustless computation/verifiable behavior – Smart contracts can be analyzed and are guaranteed to execute in predictable ways, without the need to trust a central authority. This is not true in traditional models; for example, when we use online banking systems, we must trust that financial institutions will not misuse our financial data, tamper with records, or get hacked.
At Ainslie Bullion, we're known as the best bullion provider for Australian Self Managed Super Funds. Below you'll find helpful information and you'll learn more about this type of investment strategy. Ainslie does not setup your SMSF, but gives you access to purchase AUS & AGS for your SMSF. A list of our preferred providers to help you setup your SMSF is listed at the bottom of this page.
As the main vehicle for saving and preserving your wealth as the sole means of support for you in your retirement, the cornerstone of any super fund must be balance. We all recall visions of retirees in tears after the GFC as their sole source of income went up in smoke overnight. Balancing your wealth is about having a portfolio with assets that are not correlated or that act counter-cyclically. Shares and property can crash together whereas AUS & AGS can be where the money flees to in times of such crisis, sending their price up. Waiting until then is too late.
Since the GFC we have not actually seen Governments fix the core issues of what caused our last big crash. Indeed we have more debt and more artificial economic stimulus happening in the global economy than ever before. We have share markets inflated by printed money and property inflated by record low interest rates.
AUS and AGS are allowable assets in your SMSF.
When setting up your SMSF you and the other trustees must develop an Investment Strategy as the framework for making your investment decisions. The ATO list the following as key considerations for investments:
- diversification (investing in a range of assets and asset classes)
- the risk and likely return from investments, to maximise member returns
- the liquidity of the fund’s assets (how easily they can be converted to cash to meet fund expenses)
AUS & AGS bullion meet the diversification, risk and return, and liquidity requirements. There is some disinformation around about what percentages of various assets you should have in your fund. The ATO makes no such demands and it is up to you ultimately, guided by the ATO per above, to make your own decisions.
Given that AUS & AGS has a very low investment minimum of 0.0001 AUS or AGS (approximately $0.008 of AUS or $0.00009 of AGS), fractional bar ownership is now possible for retail customers unlike ever before. These never before seen levels of fractional ownership are also at best-in-class retails prices.
A general rule for physical metals is "the bigger the bar, the better the price". This, however, is not the case for AUS & AGS. Buying AUS & AGS gives clients access to better prices than those available for 1kg+ Gold bars and 15kg+ Silver bars.
Effectively, you can buy as little as 0.0001 grams of precious metals for a better price than that of the biggest retail sized bullion bars.
AUS & AGS has low fees and is a significantly more attractive vehicle for investment as compared to other gold products. There are no storage fees and for transactions that occur on-chain (transferred via Ethereum), there is NO fee taken by Gold & Silver Standard, only the usual Ethereum gas fees (typically no higher than $1).
Ownership of the physical metal backing tokens is transferred to the Gold Silver Standard Custodian (GSSC) - a completely separate entity that holds the Bullion on behalf of Token Holders (who hold legal title to the Bullion once the AUS/AGS Token is issued or transferred to Token Holder). GSSC is a clean entity with only the bullion backing the tokens on its books. For the avoidance of doubt, GSSC does not obtain any title to or interest in the Bullion.
AUS & AGS offer one thing that physical gold and silver can not - easy to hold. Physical gold and silver, while great in their own right, can be an intimidating asset to own due to their weight, value and insurance consideration. AUS & AGS can simply be held on any ERC20 crypto wallet and can travel globally with ease.
It's still early for anyone looking closely at crypto lending. A variety of pieces need to get more built out for DeFi to reach its full potential, but it is certainly underway and will be yet another factor in securing the independence of a self-sustaining digitally based financial structure.
AUS & AGS tokens can be used in liquidity pools to earn a yield on gold and silver. Liquidity providers use their idle capital to earn attractive yield and, in case of Borrower defaults, they have a chance at obtaining fully redeemable gold and silver at a steep discount compared to market prices.
Crypto is, principally, about being your own bank and taking control of your finances. It is about freedom of finances. For the most part, this has been achieved. But the industry still has many inefficiencies, which is where AUS & AGS steps in.
Right now, if you wanted to offload a significant amount of cryptocurrency and park your profits into a safe asset (while remaining decentralised), your only option is either a USD based stable coin – which is subject to inflation – or going to liquidity pools for other inferior bullion-backed tokens. Liquidity pools have low depth and high gas fees, making them an inefficient option. This is not the case for AUS & AGS
With a few clicks you can swap your crypto profits for high value, fully backed, fully redeemable gold and silver – all the while remaining in the cryptocurrency/blockchain ecosystem.
Our friends at CoinSpot have made owning and utilising AUS & AGS even easier with the release of CoinSpot Mastercard. Instantly top up your card using AUS & AGS and use your CoinSpot Mastercard online and in-store anywhere Mastercard is accepted! From everyday transactions to holidays for the whole family, enjoy a seamless spending of your digital gold and silver.