Gyroscopic Investing

I came across this the other day. Does anyone know about it? I'll have to see once it gets up an running. Snazzy website.

http://rmg.royalmint.com

From my understanding, it uses blockchain technology, similar to bitcoin, to offer shares of physical gold. There are other services. Here is the original article where I discovered it for those who are interested.

https://fee.org/articles/combining-bitcoin-with-gold/


If this becomes effective, it looks likes the costs might be lower than comparable ETF's. I wouldn't mind exchanging some of my IAU for this.


Here's another. 'Shariah' Compliant. Weird, but there's a Sheikh running it so it must be legit:

https://onegram.org

I like the idea. There are some questions I could not find about rmg.

Where are they making money to pay the cost of storage if there are no fees.?

Can anyone obtain the RMG or would you have to be registered with them? I am wondering if this could allow capital flight from anywhere in the world. I feel like that is a big driver of bitcoin.

Sir_Bondalot wrote:I came across this the other day. Does anyone know about it? I'll have to see once it gets up an running. Snazzy website.

http://rmg.royalmint.com

From my understanding, it uses blockchain technology, similar to bitcoin, to offer shares of physical gold. There are other services. Here is the original article where I discovered it for those who are interested.

"RMG is offered in a landmark partnership between the world’s leading export mint, The Royal Mint, and CME Group, the world’s leading and most diverse derivatives marketplace."

And we can DEFINITELY believe the CME Group when they say that they will ALWAYS have all the physical gold that they claim they have.
Considering that derivatives were largely responsible for the 2008 crisis and will almost certainly be heavily implicated in the next crisis, I don't think so.

At least with bitcoin I don't expect there to be anything physical underneath. And I have absolutely no interest in bitcoin.

whatchamacallit wrote:I like the idea. There are some questions I could not find about rmg.

Where are they making money to pay the cost of storage if there are no fees.?

Can anyone obtain the RMG or would you have to be registered with them? I am wondering if this could allow capital flight from anywhere in the world. I feel like that is a big driver of bitcoin.

Good questions.
For the first question, I'm thinking they are going to have purchase and redemption fees, and that is where they will make their money. Probably from day and swing traders (sort of like a sales commission). This is good for those of us who hold long term though.

Not sure about your second question.

Libertarian666 wrote: "RMG is offered in a landmark partnership between the world’s leading export mint, The Royal Mint, and CME Group, the world’s leading and most diverse derivatives marketplace."

And we can DEFINITELY believe the CME Group when they say that they will ALWAYS have all the physical gold that they claim they have.
Considering that derivatives were largely responsible for the 2008 crisis and will almost certainly be heavily implicated in the next crisis, I don't think so.

At least with bitcoin I don't expect there to be anything physical underneath. And I have absolutely no interest in bitcoin.

I think it's a bit unfair to blame all derivatives for the small class of derivatives in 2008. Even if there were issues, CME group is just the exchange, so I don't see any reason to have issue with them, and your gold is stored in the UK by the Royal Mint, which is a government owned enterprise, so if you trust the British government in the same way you trust your treasuries, I don't see any issues.

Plus, if you don't like derivatives, that's what all the Gold ETF's are based on. Not sure if you hold physical or ETF's, but I would trust the RMG over the gold contract-based ETF's.

Sir_Bondalot wrote:

Libertarian666 wrote: "RMG is offered in a landmark partnership between the world’s leading export mint, The Royal Mint, and CME Group, the world’s leading and most diverse derivatives marketplace."

And we can DEFINITELY believe the CME Group when they say that they will ALWAYS have all the physical gold that they claim they have.
Considering that derivatives were largely responsible for the 2008 crisis and will almost certainly be heavily implicated in the next crisis, I don't think so.

At least with bitcoin I don't expect there to be anything physical underneath. And I have absolutely no interest in bitcoin.

I think it's a bit unfair to blame all derivatives for the small class of derivatives in 2008. Even if there were issues, CME group is just the exchange, so I don't see any reason to have issue with them, and your gold is stored in the UK by the Royal Mint, which is a government owned enterprise, so if you trust the British government in the same way you trust your treasuries, I don't see any issues.

Plus, if you don't like derivatives, that's what all the Gold ETF's are based on. Not sure if you hold physical or ETF's, but I would trust the RMG over the gold contract-based ETF's.

No, I don't hold ETF's. I used to hold CEF, which claimed to have physical gold and silver in their possession rather than using derivatives, but I got rid of that earlier this year due to the first(?) Sprott takeover attempt.

As for the CME, there has been a lot of discussion in the precious metals community about whether they actually have all the of the gold they claim they have, e.g., https://smaulgld.com/why-comex-wont-default/.