Loading ...How to Make Money From Gold Without Mining It
Why this makes perfect sense for junior exploration companies. Based on the well known adage that almost all of the gold ever mined, came out of the ground only to be refined and then redeposited back into the ground(vault).
That is why tokenization that is controlled, audited and on a public blockchain, makes sense specifically for gold, as oppossed to elements that get used or consumed, such as silver, copper or oil. Why spend the capital, the energy costs and the environmental degredation if you are just going to turn around a redeposit the gold into a vault? https://www.streetwisereports.com/article/2025/01/17/how-to-make-money-from-gold-without-mining-it.html?m_t=2025_01_24_10_30_12
No, you may make some currency using these tokens, but you will never make money!
If it’s not in your hand, it’s not money, and you don’t own it.
Didn’t say investors should necessarily buy the tokens. The junior mining companies are the ones who can raise capital this way. They just have to explore and confirm the gold exists, they don’t have to spend the capital to actually remove the gold from the ground.
If I understand this correctly, someone would have to put up the capital (buy the tokens) for exploration, and if the miner never digs up any gold, someone loses.
On the contrary. Just like any investment in a public company (buying stock) or buying crypto(which I am not endorsing) you might hold that investment for years. It is what happens after you buy and gains and losses are determined when you sell. If investors choose to provide capital to junior or other explorers and the resource is real and quantified, then as the value of gold with a history of going higher in the long term vs fiat or preserving purchasing power itself, the value of the tokens will increase. It is almost like a gold monetary system. As long as there isn’t fraud and the gold is definitely there, the tokens have value. It is a great way for explorers that aren’t just “holes in the ground with a liar at the top” to unlock the value of their resource without the risk and cost of developing an actual mine. Better than crypto where the only value is in the greater fool theory. Here, it is real gold (that if properly docummented) retains it’s value forever, or at least until gold is no longer held to be valuable,ie NEVER.