Before Gold Hits $3,000 — You NEED to See This

In my previous article “The $5.5 Trillion Drill Bit,” I told you about how unmined gold will be the first asset (or resource) to be tokenized on a massive scale. NatGold Digital will lead the charge in the revolution in that regard.

And more importantly, your Wealth Daily is the “tip of the spear” when it comes to the investment opportunities in the tokenization of unmined gold reserves.

We already told you about the first gold miner that’s set to tokenize its gold reserves, Great Eagle Gold.

Today, I want to dive even deeper into this opportunity that NatGold is bringing to us.

So let’s get to it…

Tokenizing unmined gold reserves involves creating digital tokens that represent ownership stakes in these untapped resources. This innovative approach can significantly impact both mining companies and their investors.

Let me remind you: The tokenization of assets/resources like gold that’s still unmined (remains in the ground) is to take something that’s illiquid and make it liquid.

Real estate is a good example of an asset that’s illiquid. I currently own a vacation home in Longboat Key, Florida. If I wanted to sell the house, it might take me months to find a buyer. But if I were to tokenize my house, investors or a home buyer could purchase my house — all, some, or most — immediately through tokens.

It’s the same with gold that’s in the ground. These reserves remain in the ground for various reasons. There could be environmental resistance to building and digging a gold mine. It could be too costly. Whatever the reason, the gold is still there.

In fact, there’s still a ton of gold still in the ground, over 2.01 billion ounces. That’s a gross resource value — at today’s record prices — of $5.57 trillion.

Gold mining companies would love the chance at unlocking all of that value with minimal effort.

The two largest gold mining companies on the planet — based on certified gold reserves and resources — are Newmont and Barrick Gold.

Let’s take a look at how tokenization would impact those two.

Tokenization Case Studies: Newmont Corporation and Barrick Gold

Newmont Corporation

As of 2023, Newmont reported gold mineral reserves of approximately 135.9 million ounces, positioning it as a leading entity in the gold mining industry.

Barrick Gold

In 2023, Barrick Gold reported proven and probable gold reserves totaling 77 million ounces.

Between the two companies, that's about $617 billion in gold. The companies have a combined market cap of over $80 billion.

If Newmont and Barrick were to tokenize some, most, or all of their gold reserves, the following would happen…

Potential Impact of Tokenization

1. Enhanced Liquidity and Access to Capital
   • For Companies: Tokenizing unmined reserves can provide immediate access to capital by selling digital tokens to investors, reducing reliance on traditional financing methods.
   • For Investors: Tokens offer fractional ownership, enabling a broader range of investors to participate in the gold market without the need for substantial capital.
2. Increased Transparency and Trust
   • For Companies: Implementing blockchain technology ensures transparent and immutable records of reserve quantities and ownership, enhancing credibility.
   • For Investors: Access to verifiable data on gold reserves builds trust and confidence in the investment.
3. Market Valuation and Investor Sentiment
   • For Companies: Tokenization can lead to a reassessment of a company's market value, as tokenized assets may be perceived as more liquid and accessible.
   • For Investors: The ability to trade tokens on secondary markets provides flexibility and potential for value appreciation, aligning with market demand.

Tokenizing unmined gold reserves presents a transformative opportunity for mining companies like Newmont and Barrick Gold, as well as their investors. By enhancing liquidity, transparency, and market accessibility, tokenization can redefine investment strategies and operational approaches within the gold mining sector.

And let me end it with this… Last week, the cryptocurrency site CoinDesk ran an article titled:

Gold will be one of the four major pillars of asset tokenization — because it can be a stablecoin.

If you don’t know already, stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to an underlying asset, most commonly the U.S. dollar (USD). Unlike Bitcoin or Ethereum, which experience extreme volatility, stablecoins provide price stability and a trustworthy medium of exchange in the digital economy.

Stablecoins act as a bridge between traditional finance and crypto markets, allowing for instant, borderless transactions while avoiding fiat currency volatility and inefficiencies.

Stablecoins can be — and are — used as a medium of commerce.

Stablecoins can be backed by U.S. dollars. Or they can also be backed by commodities like gold!

Trump has talked about the creation of a Bitcoin/cryptocurrency strategic reserve. He’s also talked about appointing a “crypto czar.”

If the world’s reserve currency is still the U.S. dollar — with the dominance of the “petrodollar” fading fast, a world reserve stablecoin backed by the USD could be another disruptor.

More on that in the coming weeks…

The Prophet of Profit,