GFC Monetary Reserve
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 benefit of GFC holders.
Preserve the Reserve.
Prudently grow the Reserve.
Act for GFC holders.
The GFC monetary system is built around two separate economic structures. Golden Fig operates the system. The GFC Monetary Reserve holds qualifying Reserve assets for the economic benefit of GFC holders.
Holding GFC does not make a holder a shareholder of Golden Fig. Owning shares in Golden Fig does not confer ownership of the Reserve.
Golden Fig / GFC Company
Corporate economic value:
Golden Fig shareholders
GFC Monetary Reserve
Reserve economic value:
GFC holders
Golden Fig's economic value belongs to its shareholders.
The Reserve's economic value exists for GFC holders.
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.
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.
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
↓
Economic benefit to GFC holders
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.
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 economic benefit 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.
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.
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. Independent professional management manages the Reserve. The Reserve is managed for the economic benefit of GFC holders.
