Gold for the smallest budget
The blockchain makes it possible to break down assets into the smallest of parts. Gold is now also available from 0.1 grams.
EOne of the applications that has emerged for blockchain technology is the securitization of assets in the smallest of units, known as “tokenization”. This is now used for all sorts of things: company investments, classic cars, art or wine. Hardly surprising when there is now gold on a token basis – real physical gold. The Cologne-based fintech GTS is now offering a token of the same name via its Heygold platform, which represents proof of entitlement to 0.1 grams of physical gold.
According to the current daily price, this amount of gold costs 4.83 euros – the Heygold token costs 6.02 euros, a premium of around 25 percent. “When buying gold, there is always a premium for small denominations,” explains GTS board member and founder Jörg Lorbach. “Thanks to digitalization, we can reduce this premium compared to the physical purchase of gold.” The calculated premium corresponds to what gold traders charge when buying one-gram bars; smaller quantities are much more expensive. Heygold is also not intended for classic gold investors, says Lorbach. “We want to give gold buying for the smallest budget and give people more power to dispose of their assets.” Apart from the premium, Heygold has no other costs for acquisition and custody.
The gold that the token represents is stored in the vaults of the German precious metal house. It can be redeemed in the online shop, where physical gold and, in the future, gemstones can also be purchased for tokens. Lorbach intends to offer savings plans in the future. In addition, points can be earned through online purchases via a bonus system, which can be used to buy Heygold tokens again. From autumn he also wants to tokenize diamonds, although Lorbach admits that things are a little different here – after all, these are unique pieces and must be tokenized accordingly. A secondary market on which tokens can be traded should also be launched in one or two months.