The BullionGold Facility

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Lee Allen
7 years ago
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1 The BullionGold Facility

2 IN GOOD TIMES GOLD IS A COMMODITY, IN BAD TIMES GOLD IS A CURRENCY AND WE RE GOING INTO A GENERATIONAL PERIOD OF BAD TIMES HILTON DAVIES, FOUNDER Gold is at the heart of human development. For thousands of years, it has been valued as a global currency, a commodity, an investment and simply an object of beauty. We see gold as the ultimate hard currency in the bad times. The bad times is a period of severe credit contraction following an enormous credit expansion where solvency becomes the key issue. In such times asset prices, banking systems and government finances come under pressure and this ultimately results in deteriorating currencies. As a consequence, people are once again waking up to the power of gold.

3 The BullionGold Facility is available within South Africa through accredited Financial Advisors, internationally though our Alliance Partners or directly through SA Bullion. OPENING A BULLIONGOLD FACILITY APPLICATION FORM All you have to do is send a completed application form with supporting documents to SA Bullion directly or through a SA Bullion accredited financial advisor. ADDITIONAL INFORMATION Updated product guides, investment case studies, all statutory disclosures and other information materials are available at the SA Bullion website and by request. WHAT DO I GET? SA Bullion Provides the following communications to its clients: Confirmation of BullionGold Facility Application and Activation Transaction Advices in respect of each lump sum contribution or cash withdrawal Transaction Advices in respect of each gold bullion acquisition or redemption Quarterly portfolio statements Quarterly SA Bullion Gold Report

4 THE CASE FOR GOLD INVESTMENT QUALITIES GOLD AND RISK GOLD AS CURRENCY Inflation Hedge Market cycles come and go, but over the long term through both inflationary and deflationary periods, Gold has consistently maintained its purchasing power. Portfolio Diversification While gold has shown strong returns over recent years, its most valuable contribution to a portfolio lies in the fact that is not correlated with most other assets. Currency on the ascendancy Gold provides investors with good protection against the depreciation in a currency s value, both internally (ie. against inflation), and externally (against other currencies). Credit Risk Credit risk is the risk that a debtor will not pay. Gold is unique in that it does not carry credit risk. Gold is no one s liability. Market Risk All assets are affected by prevailing economic and financial conditions that create price changes. This is referred to as market risk. Gold is positioned to benefit from the prevailing market risks. Liquidity Risk Liquidity risk is the risk that a seller is unable to find a buyer to enter into a trade. The gold market is deep and is one of the most liquid markets in the world. Solvency Risk Physical gold cannot go broke. When owned directly, it is not exposed to any counterparty risk and is an intrinsic store of value. When does Gold Qualify as Currency? When it is: Physical Gold Bullion Valued only for its Gold Content Owned outright without an intermediating financial instrument Deemed legal tender and therefore attracts no VAT Fully underwritten by the Central Bank When physical delivery to the owner is a fully guaranteed right THE KRUGERRAND IS THE MOST CIRCULATED GOLD COIN IN THE HISTORY OF MANKIND. IT FULFILLS ALL OF THE ABOVE WHEN DIRECTLY OWNED.

5 THE BULLIONGOLD FACILITY THE BULLIONGOLD FACILITY IS AN INVESTMENT PRODUCT THAT GIVES YOU THE OPPORTUNITY TO INVEST IN LEGAL TENDER KRUGERRANDS. IT IS A COMPLETE SOLUTION THAT INCLUDES VAULTING, INSURANCE AND GUARANTEED LIQUIDITY. K E Y F E A T U R E S Direct title-ownership of physical gold The bullion Krugerrand is legal tender and attracts no VAT Acquisition and disposal of gold is provided at wholesale market rates Secure vaulting is provided cost effectively at the world s largest gold refiner All gold holdings insured through Lloyds of London Large supply of bullion Krugerrands guaranteed by a special dispensation granted by the Reserve Bank Flexibility - clients can cash in or receive physical delivery of their gold Perfect liquidity is assured at time of redemption due to re-sale to the Reserve Bank The BullionGold Facility is a Shariah Compliant Product Approved to receive non-resident investments Transparency through online access for clients and advisors WHAT THE BULLIONGOLD FACILITY IS NOT Unlike an ETF (unsecured debenture) or other on-balance sheet structures, The BullionGold Facility is not a financial instrument that stands between you and your gold. This means that there is zero counterparty risk in The BullionGold Facility.

6 HOW THE BULLIONGOLD FACILITY WORKS Investing in the BullionGold facility is very simple. Similarly to investing in a unit trust, all you need to do is fill in an application form and open a facility. You will be issued with your own title-held call account. Here you can deposit lumps sums, or instate a recurring debit order contribution to start accumulating gold bullion Krugerrands. The purchases will be handled automatically as sufficient funds become available. The Krugerrands purchased on your behalf are held in secure custody at Rand Refinery Limited. The Call Account The BullionDesk The Gold Vault GOLD PURCHASE CASH GOLD VAULTED CONTRIBUTION WITHDRAWAL PHYSICAL DELIVERY CASH CASH REDEMPTION GOLD SALE Title-held call account opened on behalf of client Preferential interest rates payable Online access to account enables perfect transaction transparency Contribution via lump sums or recurring debit order Automatic purchases of gold when sufficient cash available The BullionDesk processes gold transactions daily by 10am Bullion is acquired at the official LBMA PM Gold Price Fix Refining and minting premium is at discount to retail market Guaranteed supply of Krugerrands by way of special SARB dispensation Perfect liquidity in respect of cash redemptions Gold bullion is vaulted in clients title Vaulting occurs at the refinery in an allocated vault Bullion fully insured through Lloyds of London Auditor confirms gold holdings by physical stock count Client has option of cash redemption or physical delivery

7 INVESTMENT AMOUNTS Contribution Minimum SA Resident Maximum Minimum Non Resident Maximum Lump Sum R10,000 None R350,000 None Recurring Debit Order R500pm R50,000pm not available not available KRUGERRAND PRICING Buy Sell Gold Price LBMA PM (Fix) 1 Rand Gold Price Refining and Minting Premium 2 +3% Spot Gold Price PLATFORM FEES Description 3 Initial Fee 4 Annual Administration Fee 5 Redemption Fee 6 BullionGold Facility Fees 1% 2% pa no fee charged The Gold Price is previous days Gold Price (LBMA $ PM Fix) expressed in Rand at the prevailing exchange rate. Krugerrands are newly minted and the refining and minting premium is paid at the time of acquisition All fees are VAT exclusive Initial fees are charged as a % of investment contributions. Accredited SA Bullion Financial Advisors may levy an initial fee in respect of advice given subject to the consent and approval of the investor. The annual administration fee includes vaulting & insurance. It is levied daily on the market value of gold holdings and billed monthly in arrears. Clients have 3 fee payment options. Cash Redemptions incur no fees. An early-exit fee may be applied in the event that a client requires physical delivery within the first 3 years of the investment period. This fee may not exceed the company s maximum fee rate over the initial 3 year period.

8 PROFILE SA Bullion is an approved investment manager (Category II FSP) that specializes in providing an investment service in physical gold bullion. The firm operates under a special dispensation of the South African Reserve Bank and in accordance with a supply and vaulting agreement with Rand Refinery Limited the world s largest gold refiner. The SA Bullion Group of companies is owner-managed. The firm was founded by Hilton Davies, previously a director in the Allan Gray and Foord Investment groups and is based in Cape Town. The Directors are Hilton Davies, Clint O Brien and Helen Davies. MANAGEMENT Administrator: SA Bullion Investor Services (Pty) Ltd Investment Manager: SA Bullion Management (Pty) Ltd Custodian: Rand Refinery Limited Auditor: Ernst & Young Inc. Gold Regulator: South African Reserve Bank Financial Regulator: Financial Services Board Commerical Bank: Nedbank Ltd CONTACT Suite 3, The Old Castle Brewery, 6 Beach Road, Woodstock, South Africa 7925 T F business@sabullion.co.za Find us on Facebook: Follow us on Twitter: SA Bullion is an Authorized Financial Services Provider with FSP no 21984

ADDITIONAL (ASX DESCRIPTION CODE: ZGOL) AND THE DATE

HEADLINE GOES ANZ HERE ETFS PHYSICAL ONE LINE GOLD OR TWO ETF ADDITIONAL (ASX DESCRIPTION CODE: ZGOL) AND THE DATE THE EXCHANGE TRADED FUND THAT S AS GOOD AS GOLD 1 WHAT IS ANZ ETFS PHYSICAL GOLD ETF?