Responsible Gold tracking reduces lender risk

Default Risk

  • Lenders take greater risk when lending against pool metal compared to specific, identifiable metal.
  • Responsible Gold reduces default risk because it is specifically identifiable.
  • The Responsible Gold Supply Chain Application tracks the underlying physical gold as it moves from mine-to-refinery-to-vault or fabricator.
  • At the refinery, it cannot fall into a “pooled” arrangement. At the vault, unlike XAU, Responsible Gold kilobars are stored on an allocated basis.
  • Responsible Gold lenders demonstrate continuous control and establish, maintain and prove constructive possession as a result of full segregation and traceability.

Reputation Risk

  • Providing financing for unlawfully sourced gold during the refining stage and afterwards can permanently damage an institution’s reputation.
  • With irrefutable provenance and supply chain transparency, Responsible Gold lowers the risk of unknowingly funding illicitly sourced gold.

Benefits to the Supply Chain

  • Miners register doré on the blockchain to receive funds even before the doré leaves site.
  • Refiners borrow against segregated Responsible Gold instead of against pooled gold that has been pledged to multiple lenders.
  • Fabricators give lenders visibility into tracked inventory.
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