Singapore Bullion Market Association

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Leveraging Technology to Modernise Gold

By Brian Lan, Managing Director, GoldSilver Central

Gold is an essential part of an investment portfolio, especially in the current geopolitical climate and increasingly volatile equity, currency and bond markets. Hence accessibility and fungibility for gold are imperative in today’s Internet of Things (IOT) and super-app enabled world. Improving accessibility and fungibility ensures that gold will remain attractive to younger investors and allow anyone who wishes to own any amount of gold to participate in the gold market, reducing friction between vendors and dealers in the gold trade.

Established in Singapore in 2011, GoldSilver Central has created products to enable clients to accumulate precious metals in bite-sized amounts through different product offerings such as GSC Live! and the more popular GSC Savings Accumulation Program. These various services have assisted many clients to accumulate precious metals while addressing the issues of high-cost accessibility and micro fungibility. GSC has always adopted the view that we need to embrace new technology to increase the efficiencies and benefits to end-user clients for their gold. The merging of technology with the trusted aspects of physical gold is required to unlock more of gold’s multi-faceted asset values.

One example of this is our collaboration with Goldblocx, our technology partner that applies digital ledger technology to various functions and processes of the operational supply chain, bringing about enhanced traceability and efficiencies. An example of this is Auto-Save, the DIY version of what is currently GSC’s Savings Accumulation Program. Clients can now start, stop, cancel, or continue their precious metals accumulation via the Goldblocx app at any time with no restrictions. Any additional clarification or query can be directed immediately via the in-app chat without the need to send any external emails.

Fractionalisation of gold

With Goldblocx, fractionalisation of gold is simple, allowing anyone the ability to buy any amount of gold, even in S$0.01 increments. And in Auto-Save, this can even be set up automatically and daily. The format of gold transacted via Goldblocx is in Pool Allocated format, allowing users to easily convert their purchased accumulated gold into their desired physical gold bar, coin or even jewellery via the app. Additional bar/coin/jewellery premiums would apply and differ accordingly based on the selection. Alternatively, users can also immediately sell it off anytime if they want to and in any amount without incurring any premium cost loss. Fractionalisation makes all this possible.

One can access additional services via the app, which include converting existing physical gold into a more convenient and manageable micro trading format, direct conversion/buying/selling of gold against silver or vice versa in one click, sending/collateralising your physical holdings for a cash loan or linking up to another broker/dealer and using your physical gold as collateral for margin trading. We are constantly creating new applications internally that can hopefully produce meaningful and valuable outcomes to meet end-user client needs.

Left Image: GSC Live! On mobile
Right Image: Goldblocx app with features displayed above

Something for everyone

Goldblocx provides tools and services that help users become better investors – from applying dollar-cost averaging strategies for novice investors to fractional position sizing strategies for advanced traders.

On the wealth management side, Goldblocx provides a free tool for users to track their physical gold holdings, including any jewellery they may own, providing real-time valuation of these holdings and giving them the flexibility to do what they want with them in any desired quantity and when the time is right for them – not their vendor.

Staying connected

Precious metals dealers, jewellery manufacturers and jewellers must keep offering great experiences to end-user clients and remain relevant to investors looking to seamlessly interact with their physical gold.

Technology will continue to play a meaningful role in connecting the various products and services currently available in the precious metals space and ultimately bring about increased usability and connectivity to the precious metals community.

GoldSilver Central and Goldblocx (GoldPlus Assets) are registered precious metals and precious stones dealers under the Ministry of Law Singapore for anti-money laundering purposes, countering terrorism financing and operating by following the regulations under the Commodities Trading Act Singapore.

BRIAN LAN is the Managing Director of GoldSilver Central, where he was instrumental in developing the leading GSC Live! application in 2016. Brian is also Co-CEO of Goldblocx, which he co-founded with his partners to follow his passion for leveraging technology to transform business processes and advance client outcomes.