Jewellers can secure forward delivery of gold through a new high-tech funding solution for mines. DMX is solving three key problems for the metals business – providing funding for early-stage mines, enabling buyers to secure future delivery and hedge against price increases and, importantly, guaranteeing provenance of the metal.
The gold currently on sale on DMX ranges in delivery time frames from nine to 36 months and discount rates from 9.5% to 27%, with the lower value reflecting lower risk as the assets are above-ground and close to production and the higher one attached to assets where the production is further in the future.
DMX is currently offering approximately 70,000 oz of gold from four mines – three in Australia and one in Ecuador – at a current market value of approximately USD 120 million. Investment professionals and manufacturers may forward-purchase a specified quantity of the metal, at the discounted price, to be delivered at an agreed time. Between issue and delivery the digital assets can be freely traded on DMX.
Digital Metal Exchange (DMX) is an Australian based institutional-grade online-only commodities exchange. It offers near future delivery of gold at significant discounts. The gold purchase is made through a new form of asset, a digital token backed by an agreed amount of metal to be delivered on an agreed date. The tokens contain rules of trade, exchange and delivery known as smart contracts.
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