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The Royal Mint and CME Group to launch Royal Mint Gold

Cory
November 30, 2016

This is an interesting development in the gold investing world. The CME Group and The Royal Mint are teaming up to offer a new way to invest in physical gold with lower costs and an assumed safety that the gold is present. This product is not available yet but we will track this to find out if any key deals are released.

Here is some more information…

The Royal Mint, the world’s leading export mint, and CME Group, the world’s leading and most diverse derivatives marketplace, today announced a collaboration to transform the way that market participants can trade gold.

The Royal Mint, a 1,000-year-old institution owned by HM Treasury, has partnered with CME Group to build and launch a digitised gold offering called Royal Mint Gold (RMG).  RMG will change the way traders and investors trade, execute and settle gold.

The innovative new product, launching in 2017, will see The Royal Mint issue RMG as a digital record of ownership for gold stored at its highly-secure on-site bullion vault storage facility.   CME Group will develop, implement and operate the product’s digital trading platform.  Taken together, this new service will provide an easier, cost-effective and cryptographically secure alternative to buying, holding and trading spot gold.

Commenting on the announcement, Vin Wijeratne, CFO of The Royal Mint, said “The Royal Mint has a unique history and a trusted reputation earned over many centuries trading in gold but until now, there hasn’t been a way to digitally trade physical gold.”

“Developing a trading platform with CME Group will satisfy customer demands for faster, cost effective and secure ways to buy, hold and sell gold and complement our existing products. This landmark partnership allows us to combine the world’s leading mint, the best futures trading platform globally and best in class technology.”

David Janczewski, Director of New Business at The Royal Mint said, “Distributed ledger technology is a game changer and supplying gold on a blockchain has been on our minds for some time, but only after partnering with CME Group did we feel we had the right fit and proposition.”

“We’re now inviting the wider market to participate in this project alongside us and CME Group and we look forward to engaging with interested parties in the days ahead.  Participation will enable us to develop the platforms to be able to connect to the CME network and trade gold.”

CME Group will launch a digital trading platform which will operate 24 hours a day, 365 days a year. Unlike the traditional physical spot cost model for investing in gold with management fees and ongoing storage charges levied, RMGs will offer ownership of the underlying gold with the option for conversion to physical gold by The Royal Mint with zero storage cost.

The initial amount of RMG at launch could be up to $1 billion worth of gold. It will be offered through investment providers. Further RMG will then be issued based on market demand.

Julie Winkler, Senior Managing Director, Research, Product Development and Index Services at CME Group said, “Developing a digital gold trading platform will help ensure that CME Group’s current product offerings meet the evolving needs of the global marketplace. As we continue to expand our global footprint and develop new products, this platform will help set standards for digital assets in financial markets. ”

Sandra Ro, Digitization Lead at CME Group, added, “Innovation is at the heart of CME Group’s business, and the work we have done on RMG with The Royal Mint is testament to CME Group’s progress on the application of digital assets and distributed ledger technology to financial markets. By collaborating with The Royal Mint, we have set a new milestone in the digitization of value.”

Discussion
13 Comments
    Nov 30, 2016 30:37 PM

    No more London fix …..
    Just 24 hr. fixing…..
    Chinese should be happy

    Nov 30, 2016 30:56 PM

    Indian mob locks up bankers

    Nov 30, 2016 30:54 PM

    Is it true that Trump has picked Sarah Palin for Sec. of State and that Dan Quayle will be the next Fed Chairman?

    Nov 30, 2016 30:55 PM

    Btw……it is my birthday tomorrow ….along with Big OWL,….we will both turn 37 and 39.. 😉

      Nov 30, 2016 30:21 PM

      Happy Birthday , you pair of old sods…Have a great one…XXX

        Nov 30, 2016 30:51 PM

        Owl forgot it was tomorrow,…he had to check his fake birth certificate, which he borrowed from obamy.

    Nov 30, 2016 30:07 PM

    In order that this offer gets carried out, they need to secure that much gold beforehand. Golden Band resources engaged in a defeasance type arrangement where earnings were retained over five years in irder that sufficient capital was arranged. The Sprott Physical Precious Metals ETF stored at the Royal Canadian Mint as well as the Mint’s ETR were provided with unrefined gold in a payment-in-kind arrangement. The outcome of this arrangement was foretold by the vertical short form amalgamation with the Jolu Development Corporation in 2010, which has led to a pro-forma insolvency probably to end in a going private transaction at the close of the fiscal year.

    The reason why I say this is that this kind if arrangement relies on either the name of the CME, or that they have somehow obtained mine supply.