26/05/2024

What is Gold-Steaming?

There are certain formulas to gold-streaming; two of the main ones are where a fund-raising organisation (a Bond, Fund, or any other investor vehicle) will either finance a mine, guaranteeing its gold is bought, or source gold from many mines, with the intent to buy once the sale is in place for the refined gold.

Both methods work well and do provide steady returns, but for savers/investors looking for the less risky option, the second one is the one to go for.

So how does this option mitigate risk and how does the process generate returns to satisfy all parties? In essence, any business deal involving client monies and stated returns, needs to have a formula in place that provides returns for the investor, the supplier, the buyer and the processing companies involved. Most Bonds will outsource the raising of funds to Brokers; the sourcing and buying/selling of the product to specialist companies and to build in a ‘safe pair of hands’ a registered Trustee (often registered with recognised Regulatory Body) to oversee the entire process. This does add expense and this will be factored into the calculations, when assessment of a deal is being made. Obviously if the figures don’t add up, it’s time to source another deal!

So, with Gold-streaming, the Brokers will raise funds from their clients, this will be sent to Trustees awaiting a deal to be presented to them form the buyers. These buyers will need to satisfy the Trustees, that they have sourced, assessed for quality and also sold the refined gold, as well as allowing for the costs of the process. When the Trustee have studied the deal and are happy it is a profitable one, only then will they release the client funds to allow the deal to take place. The assessed gold is then bought, insured and shipped to a refinery, whereby the sale is executed and the sale proceeds are then returned to the Trustees. The Trustees will then instruct the payment of costs to be paid.

This process happens many times a year and over that period, the returns stated to the investors will be met, the organisations involved in the process paid.

If we now look at our own offering from THG Capital, we can clearly see this process is in place and also the companies used. This formula has been tried and tested several times before launch in 2019 and since its launch in 2020 has delivered, predictably, 100% of the promised returns.

They always say that if there are several parties in a process and they all want paying, profitability is not an option, but a must; hence the process has been used and delivered faultlessly for over 4 years.
Just to show ultimate transparency, the companies involved are:

  • Mybestbuysavings – the broker (part of The Hinton Group)
  • THG Capital Savings – the Bond provider (part of The Hinton Group)
  • Bullion Bridge Limited – the buyer, assessor and seller
  • City Partnership Limited – the UK FCA Registered Trustee

We hope this has explained clearly the gold-streaming process that provides the returns, risk mitigation and transparency of how your money works within the THG Capital Savings Gold Bond.

FAQs

What is the connection between Mybestbuysavings and THG Capital?

Mybestbuysavings is the Broker part of The Hinton Group. It specialises in dealing with inbound enquiries from perspective customers looking at investing in short term Bonds that have the core asset as Gold. Using Gold-streaming, THG Capital, the Bond provider, mitigates the risk involved in traditional gold investments, buy using front and back-end pricing; in short, they agree the sale price of their potential gold purchases, before they agree the purchase price. THG Capital has been using this method for many years and has delivered 100% of the promised returns. By outsourcing to expert gold traders and using an FCA Registered Trustee to oversee proceedings, they give total peace of mind to their valued clients.
 

Is THG Capital Gold Bond a sustainable investment opportunity?

Although THG Capital do not advertise themselves as a sustainable investment opportunity, their purchases in Africa are from small artisan mines and not huge corporate ventures. This means that the local people involved in usually overlooked areas of the continent, get their hard work rewarded and this has enabled communities to build, schools, roads, libraries, communication networks etc. This feel-good factor is a welcome side-line of the model used by THG Capital.

Why should I consider an expat fixed rate savings account?

THG Capital has geared itself towards the expat fraternity, due to there being a gap in the market and therefore availability for a high interest savings account with mitigated risk for those families that have decided to live oversees. They have built in as many layers as possible to give expats security and peace of mind by, at their own cost, building in the services of a UK FCA Registered Trustee to hold the assets of the Bond. All this has led to THG Capital winning the prestigious award as ‘Best UK Expatriate Fixed Interest Bond Provider’.

If you would like to find out more about Gold Bonds and other sustainable investment opportunities, get in touch by calling +44 (0) 1243 767 664 or email: info@mybestbuysavings.com

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