The vault does not have to be the end of the gold's economic life.
Physical gold delivered through the GFC Gold & Silver Tree is intended to enter the protected GFC Monetary Reserve.
Reaching the vault changes the form and certainty of the asset. It does not necessarily end its economic contribution.
Subject to the GFC Monetary Constitution and the applicable Reserve Management Policy, Reserve assets may be independently and professionally managed with the objective of preserving and prudently growing their long-term real economic value for the legally enforceable beneficial ownership of GFC holders.
Preserve the Reserve. Prudently grow the Reserve. Act for GFC holders.
Two structures. One GFC system.
The GFC monetary system is built around two separate economic structures. Golden Fig operates the system. It does not beneficially own the protected Gold & Silver Forest or Monetary Reserve. The Monetary Reserve will belong beneficially to GFC holders — not to Golden Fig.
Holding GFC does not make a holder a shareholder of Golden Fig. Owning shares in Golden Fig does not confer beneficial ownership of the Reserve.
Before any GFC is issued against a qualifying mining interest, Golden Fig commits to establish a legally binding and enforceable structure under which GFC holders have proportional beneficial ownership of the relevant qualifying mining rights and economic interests. That beneficial ownership begins with the qualifying mining interest itself — not only when physical gold enters the Monetary Reserve.
Golden Fig company economics
Corporate revenues
Disclosed fees and service income
Corporate expenses
Net corporate profit
Belongs to Golden Fig shareholders
Corporate economic value:
Golden Fig shareholders
GFC holder economics
Qualifying mining interests
Gold & Silver Forest
Physical precious metals
Monetary Reserve
Related protected economic value
Belongs beneficially to GFC holders under the legally enforceable holder structure
Protected Reserve economic value:
Belongs beneficially to GFC holders
Golden Fig's economic value belongs to its shareholders. The GFC Gold & Silver Forest and Monetary Reserve belong beneficially to GFC holders.
Legal title may, depending on the final structure, be held by an independent trustee, custodian or protected vehicle, but the assets will be held for GFC holders under enforceable beneficial ownership arrangements. Golden Fig commits that, before qualifying GFC issuance, the Reserve will be legally structured so that it is segregated from Golden Fig's unrestricted corporate assets. Those documents are not yet executed.
If Golden Fig becomes insolvent, ceases operations or the GFC system is terminated, the Reserve is intended to remain outside Golden Fig's ordinary corporate estate and to be administered, transferred, realised or distributed for GFC holders in proportion to recognised GFC holdings.
Ownership chain
Qualifying mining interest
↓
Verified Resource / Reserve
↓
Development
↓
Production
↓
Doré
↓
Physical gold in the Monetary Reserve
The beneficial interest remains with GFC holders throughout.
The form of the asset may change. The beneficial ownership principle does not.
The Monetary Reserve will belong beneficially to GFC holders — not to Golden Fig.
What the Reserve may hold
As the Gold & Silver Tree develops, the Reserve may hold economically different categories of value. Those categories must remain separately identifiable. They must not be blended into one headline gold-backing number.
Qualifying precious-metal interests
Contractual future gold or silver entitlements
Physical refined and allocated precious metals
Permitted Reserve investments
Physical gold held
≠
Contracted future gold
≠
Mineral Resources
≠
Mineral Reserves
These categories carry different levels of risk, liquidity and certainty. Physical allocated metal is not contracted future gold. A Mineral Resource is not a Mineral Reserve. None of them should be presented as though they were the same economic fact.
Independence in investment. Accountability in performance.
Golden Fig may appoint, evaluate and replace appropriately qualified professional Reserve management. Once appointed, however, individual Reserve investment decisions should be made independently within the approved Reserve mandate.
Golden Fig may identify opportunities. It should not direct the Reserve to make a particular investment.
Golden Fig
↓ appoints / evaluates / may replace
Independent professional management
↓ independently manages
GFC Monetary Reserve
↓
Beneficial ownership of GFC holders
The tree can continue to bear fruit.
Physical gold reaching the GFC Monetary Reserve does not necessarily mark the end of its economic contribution.
Where permitted under the Reserve mandate, Reserve assets may be professionally managed or reinvested to seek additional economic value. This may include, where appropriate, investment in new qualifying precious-metal opportunities.
Potential reserve reinvestment cycle
Reserve capital
↓
New qualifying gold interest
↓
Production
↓
Physical gold
↓
Larger Reserve
The Reserve may grow without the currency supply growing.
A potential cycle, not a promise that reinvestment always occurs. Investment of existing Reserve capital does not, by itself, authorise new GFC issuance.
Reserve income remains with the Reserve.
Custodians, auditors, valuers, professional asset managers and other legitimate service providers may receive reasonable and properly disclosed compensation.
After authorised Reserve expenses and professional fees, the remaining net economic value generated by the Reserve remains within the GFC Monetary Reserve for the beneficial ownership of GFC holders.
Golden Fig may also receive properly disclosed compensation where it performs legitimate Reserve-related services.
Golden Fig may be paid for services. It does not thereby own the Reserve or its net economic value.
Who holds the gold is not the same as who manages the Reserve.
Professional custodians safeguard allocated physical precious metals. Independent professional management makes authorised Reserve investment decisions. Independent auditors, technical experts and valuers perform separate verification functions.
No single participant should be able to create, verify, value, custody and report the same Reserve asset alone.
A Reserve should be visible.
If an asset supports GFC, a holder should ultimately be able to understand what the Reserve holds, who holds it, how it is managed, how it is verified, and how its economic value is changing.
The GFC Reserve Register is intended to present those categories separately rather than combining them into one impressive figure.
The Gold & Silver Tree creates the fruit. The GFC Monetary Reserve preserves it — and seeks to prudently compound its economic value.
Golden Fig builds and operates the system. It does not beneficially own the Monetary Reserve. Independent professional management manages the Reserve for the legally enforceable beneficial ownership of GFC holders.
