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Democratising Access to Gold

By Robin Lee, CEO, HelloGold

Published on April 17, 2018

Robin Lee is the founder and CEO of HelloGold, a startup that creates simple and accessible Gold products for everyone. Founded in 2015 and headquartered in Kuala Lumpur, Malaysia, HelloGold built the world’s first Shariah compliant gold digital application. It was awarded the Most Innovative Islamic Retail Banking Product in 2017, Malaysia’s Most Prominent Wealth, Asset & Investment Management of the Year in 2018, and won membership to the TenXClub – Malaysia’s most promising start-ups according to the Ministry of Finance.

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HelloGold founder and CEO Robin Lee explains why he believes in gold’s digital future, and why he thinks gold-backed tokens have a role to play in the investment landscape.

For a long time, gold was money. In fact, it has been since 635 BC, when gold coins were standardised in Asia Minor, the Asian part of modern Turkey. In an instant, gold became the go-to store of wealth. For the West, located across the Mediterranean, gold money enabled the democratisation of wealth and laid the foundation for modern commerce. And gold remained so until August 1971, when US President Richard Nixon ended the gold convertibility of the dollar. From that fateful Sunday onwards, the fiat money people held was all we they were going to get. There are those who still hope for a return to the gold standard. For me, gold as money is dead for good. But gold’s role as a store of wealth remains as relevant, if not more so, today as it has ever been. HelloGold wants to democratise access to gold through its digital token product, GOLDX, to the man on the street in every economy where affordable, accessible gold remains unattainable.

Democratisation of modern investment products began as early as the 1860s in the United Kingdom, with the introduction of investments that enabled investors of moderate means the same advantages as large capitalists. Open-ended mutual funds in the 1920s and passive investment products in the 1970s followed. Now, exchange-traded funds (ETFs) are easily accessible to investors. Each subsequent financial innovation led to a reduction in running costs that enabled investors with smaller amounts to invest.

Exchange-traded products backed by gold

One of the most innovative products that has emerged in the past 15 years is the gold ETF – physical gold in the form of an exchange-traded security – launched in 2003. Prior to the launch of these ETFs, there was huge scepticism that there was demand for such a product, which enabled the retail investor to buy 1/10 oz or 1/100 oz at spot. Many argued that investors only wanted physical gold and would never want gold-backed securities. They were wrong beyond anyone’s wildest imagination – at one point in 2011, the World Gold Council’s SPDR Gold ETF had more under its management than its equivalent US stock market product, SPY. Fast forward nearly 15 years and the physical gold ETF universe has over US$90 billion in gold under its management, making up one-third of investment demand for gold. 1

As a group, physically backed gold ETFs are now the fifth-largest holder of gold, just behind the United States, Germany, Italy and France. The introduction of the ETF gave people with access to the gold spot market in equity form for the first time. Suddenly, gold could be traded just as easily as buying shares of any stock. Before the ETF, investors could not easily invest in gold. They could buy coins or bars, but due to issues over storage and acquisition, investing in gold was not at all liquid, transparent or efficient.

If the ETF has been so successful, is there a meaningful role for a gold-backed token like GOLDX? The answer is undoubtedly yes.

The man on the street needs gold-backed tokens

Gold-back tokens address several issues:

  • Many people do not buy securities
    In the United States, arguably most developed financial market in the world, less than 50% of Americans do not invest directly or indirectly in securities.2 Assuming that participation levels in emerging markets are, at best, no better than the United States, there remains a large portion of the population that do not have the ability to invest in gold through an ETF. However, anyone is be able to buy gold through its tokenised form with a cryptowallet and a computer or mobile phone.
  • Transaction sizes remain beyond the reach of many
    According to the same survey, more than half of those who do not invest in the stock market said it is because they do not have enough money to do so. With GOLDX, investors will only need 1 unit of local currency to buy gold at spot using their mobile phones.
  • Gold ETFs are not available in all markets
    Without the benefit of a broker with access to international markets or sufficient capital to apply for an account with an international online broker, many are unable to access the right exchanges to buy a gold ETF. With GOLDX, once again, the man on the street only needs a mobile phone with a crypto wallet.
  • Gold as collateral
    For the high net worth and wealth management market, it is possible to use their investment portfolios to secure financing. This avenue is typically not available to the man on the street. In emerging markets, the problem is more acute where financing from traditional financial players form 20% of all loans made and where two-thirds of loan applicants are typically turned away from mainstream financial lenders.

Ultimately, gold-backed tokens such as GOLDX enable their holders to access affordable financing. If ETFs brought gold to the mainstream securities investor, digitised gold (gold-backed tokens) has the potential to democratise gold for the man on the street. Tokenisation of gold removes the final barrier to wealth preservation for everyone – people’s ability to save through something other than cash will be simply a function of their desire to save through gold and no longer because they do not have access to the right product because they live in the wrong country or because they do not have enough funds to save.

Robin Lee is the founder and CEO of HelloGold, a startup that creates simple and accessible Gold products for everyone. Founded in 2015 and headquartered in Kuala Lumpur, Malaysia, HelloGold built the world’s first Shariah compliant gold digital application. It was awarded the Most Innovative Islamic Retail Banking Product in 2017, Malaysia’s Most Prominent Wealth, Asset & Investment Management of the Year in 2018, and won membership to the TenXClub – Malaysia’s most promising start-ups according to the Ministry of Finance.

Notes

1 World Gold Council, ETF data 2017.
2 Claes Bell, “Did you miss the stock market rally? You’re not alone”, Bankrate (April 9, 2015). http://www.bankrate.com/investing/did-you-miss-the-stock-market-rally-youre-not-alone/.

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Singapore Bullion Market Association Secretariat-Lee-Jia-Yi

Lee Jia Yi

OPERATIONS & ADMIN EXECUTIVE
Before joining SBMA, Jia Yi worked as an Admin & Reporting Officer in her previous role. She holds a Diploma in Business & Social Enterprise from Ngee Ann Polytechnic. Jia Yi is responsible for managing and maintaining physical and digital files in SBMA, supporting invoicing processes, reconciling receivables and payables, coordinating meetings and conferences. Additionally, she will provide support to the team and assist the Business Director in managing the Association’s office operations and general administrative activities.

SECRETARIAT SBMA-Emily-Oh

Emily Oh

OPERATIONS & ADMIN EXECUTIVE
Emily Oh is the Operations & Admin Executive, a seasoned professional who values teamwork and effective communication. She is skilled at adapting to new challenges and takes a proactive and resourceful approach to every task. Before joining SBMA, Emily had experience coordinating international travel arrangements and spearheading community initiatives. Her role at SBMA will be providing operational and administrative support for projects and other matters to the team.

SECRETARIAT SBMA Clara-Chang

Clara Chang

MARKETING & COMMUNICATIONS EXECUTIVE
Clara Chang joins SBMA as the Marketing & Communications Executive, enriching the team with her extensive experience in content creation, social media management, and digital marketing. Prior to joining SBMA, Clara held the position of Marketing Executive at her previous job. She holds two bachelor’s degrees from the University at Buffalo, one in International Trade and another in Geographical Information Science. Her core duties will include maintaining the SBMA website, managing the quarterly Crucible newsletter, among other responsibilities.

SBMA Committee-Photo-john-levin

Mr John Levin

Global Metals
TD Securities
John Levin is the Head of Metal Sales & Trading – APAC at the Toronto Dominion Bank’s Singapore office. Prior to this role, he devoted seven years to leading precious metal sales for the ANZ banking group in his home country, Australia. Notably, from 2009 to 2011, John played a significant role on the management committee of the London Bullion Market Association while serving as the Head of Precious Metals Sales for HSBC Global Banking and Markets in the UK.

SBMA Secretariat-Fabian-Lew

Fabian Lew

MARKETING & COMMUNICATIONS OFFICER

Fabian was a Business Development and Marketing Associate before joining SBMA. He graduated from Singapore Management University with a Bachelor’s degree in Economics.

He has joined SBMA since February, 2022.

SBMA-margare-secretariat

Margaret Wong

BUSINESS DIRECTOR

Margaret Wong, Business Director at SBMA (Singapore Bullion Market Association), brought valuable experience from her previous role at the World Gold Council (WGC). Her tenure at WGC provided her with extensive exposure to the gold community in Singapore and the broader region. This background has been instrumental in establishing strong working relationships within the industry.

Margaret’s role at SBMA encompasses a diverse range of responsibilities. She oversees office management, business support processes, finance, and administrative functions essential for the smooth operation of the team and management committee. Additionally, Margaret handles membership matters, member communications, and addresses public inquiries related to SBMA.

One of Margaret’s key responsibilities is coordinating with the Event Management Company for SBMA’s prestigious annual event, the Asia Pacific Precious Metals Conference. This flagship conference plays a crucial role in the industry, making her involvement pivotal in its success.

Described as resourceful and self-motivated, Margaret Wong brings a wealth of skills and experience to her role at SBMA, ensuring efficient operations and effective engagement within the precious metals community in Singapore and beyond.

SBMA-Albert-secretariat

Albert Cheng

Chief Executive Officer

Albert Cheng joined the World Gold Council in March 1993 as a Regional Manager, becoming Managing Director, Far East in 2003. He retired at the end of March 2015 and was subsequently named its Advisor. He has also been an International Advisor to the Shanghai Gold Exchange since 2002.

His marketing career began with Dentsu Young & Rubicam, Hong Kong in the early 80’s. He began gold marketing in July 1985 when he joined the Royal Canadian Mint as a Regional Manager for Southeast Asia.

He was appointed honorary CEO of SBMA in November 2015. He is responsible for the success and strategic development of SBMA, represents the interests of the Association, and is responsible for all the legal and regulatory aspects of the work of the Association. He is the primary contact for regulators and government bodies on bullion market development.

Ms Pawan Nawawattanasub

Ms Pawan Nawawattanasub

CEO
YLG Bullion Singapore Pte Ltd

Pawan is the CEO of YLG Bullion Singapore and founder of YLG Bullion International. She has almost 40 years of experience in the jewellery industry and established YLG in Thailand in 2003. In 2012, she brought YLG to Singapore. She sits on the Board of Directors of the Thailand Gold Traders Association, the Thailand Futures Exchange’s Arbitration Committee, and the Rotary Bangkok committee. She holds a master’s degree in Political Science.

SBMA-Shaokai-Fan

Mr Shaokai Fan

Head of Asia-Pacific (ex China) and Global Head of Central Banks
World Gold Council
Shaokai Fan is the Global Head of Central Banks at the World Gold Council, responsible for advising governments on gold matters, and enhancing the gold market through engagement, dialogue, and thought leadership. He works directly with central banks and sovereign wealth funds on investment considerations. Prior to this position, Shaokai held multiple roles at Standard Chartered Bank, including Director for Asia Strategic Initiatives and Associate-Director for Public Sector coverage. Shaokai holds a Masters of Public Administration from Columbia University and the London School of Economics, and an undergraduate degree in finance and economics from New York University.

SBMA-Committee-Alan-Liew

Mr Alan Liew

Head of Bullion & Commodities Trading
United Overseas Bank Limited
Alan is Head of Bullion and Commodities Trading for Group Trading in Global Markets, United Overseas Bank (UOB). Alan joined UOB and started the bank’s commodities trading business in 2014, previously he spent eight years in Standard Chartered Bank (SCB) trading both precious and base metals. During his tenure at SCB, he obtained the SGE gold trader licence and was part of the pioneering team for the SGE business and the FX quantitative trading team. Prior to trading, he worked for Monetary Authority of Singapore in the Financial Risk Management Division. He holds a BSc (Hon) in Computer Science at National University of Singapore and a MSc in Financial Engineering at Nanyang Technological University.

SBMA-Committee-Nikos

Mr Nikos Kavalis

Managing Director
Metals Focus Singapore Pte Ltd
Nikos Kavalis is a founding partner of Metals Focus. He has over 20 years of experience in precious metals, having previously worked for the Royal Bank of Scotland and GFMS. Since September 2019, Nikos has been based in Singapore, where he also runs the local subsidiary of Metals Focus.

SBMA-Committee-khun nuttapong

Mr Nuttapong Hirunyasiri

CEO
MTS Gold Global Trading Pte Ltd
Nuttapong Hirunyasiri is the CEO of MTS Gold Group, one of Thailand’s top 10 companies and top 3 bullion companies. He started MTS Gold Group’s first overseas office in Singapore and has been expanding the group business internationally. He focuses on product development and innovation for gold investment, with the aim of being a leader in providing the full suite of gold investment services in the ASEAN region.

SBMA Committee-Photo-Raman-Walia

Mr Raman Walia

Executive Director, Head of Commodities Sales – APAC
JP Morgan Chase Bank N.A.

Raman is Executive Director and Head of Commodities Sales, APAC, for J.P. Morgan. He joined JPMorgan in 2008 in New York, moved to Singapore in 2011, and helped expand the precious metals business in the region. Raman has an MBA from Cornell University, and likes to travel in his spare time.

SBMA Committee-Photo-Andrew-Clarke

Mr Andrew Clarke

Head of Brink’s Global Services
Brink’s Global Services Pte Ltd

Andrew Clarke is the Head of BGS (Brink’s Global Services) for Singapore, Indonesia, Malaysia and Brunei. He has held various leadership positions throughout his career in secure logistics and risk management with Brink’s, which started in Hong Kong in 2010. Andrew relocated to Singapore in 2018 to expand the precious metals line of business along with Brink’s portfolio of services and industries.

SBMA Committee-Photo-Kazuya-Naoki

Mr Kazuya Naoki

Head of Metals, Asia
ICBC Standard Bank Plc, Singapore Branch

Kazuya (Kaz) Naoki is the Head of Metals, Asia of ICBC Standard Bank in Singapore and is responsible for the precious & base metals sales and trading in the region. He joined Standard Bank Plc Tokyo Branch in 2008 and was relocated to its Singapore Branch in 2013 whose controlling stake was acquired by the Industrial and Commercial Bank of China in 2015. Prior to joining Standard Bank, Kaz spent 11 years focusing on commodity trading and risk management with Mitsui & Co in Tokyo, Sydney and London. Kaz has been serving on the SBMA Management Committee since 2016.

SBMA Committee-Photo-Vinh-Nguyen

Mr Vinh Nguyen

Head of Precious Metals, Asia
StoneX APAC Pte Ltd

Vinh Nguyen joined StoneX Group in Singapore at the beginning of 2008 and responsible for its APAC precious metals activities since 2019 until now.

SBMA Committee-KL-Yap

Mr KL Yap

General Manager, Singapore Refining Business Unit
Metalor Technologies (Singapore) Pte Ltd
KL YAP is the General Manager of Metalor Technologies (Singapore) Pte Ltd’s Singapore Refining Business Unit. He joined Metalor in 2013, initially in Refining Sales. In 2014, he became Refining Business Unit Manager, leading the development of a new precious metal refinery. KL was Vice Chairman of SBMA from 2017 to 2021, now serving as Chairman. With a degree in business commerce, finance, and marketing, he brings prior experience from refinery and heavy industries.