Perth Mint attracts 1,400 new investors with gold token

The Perth Mint has announced 1,400 new investors have registered for digital accounts in the past two weeks, following the launch of its Perth Mint Gold Token (PMGT).

PMGT, which is the first gold token in the world guaranteed by a sovereign entity, serves as an alternative to USD-backed stablecoins and was launched in collaboration with InfiniGold on October 10.

Backed by the mint’s Goldpass digital certificates, chief executive Richard Hayes told Business News earlier this month that the token was a stable and safe alternative because it was tethered to the price of gold stored at the mint.

Mr Hayes said he had been pleased with the response from investors globally, and that he expected to see interest in the token to grow in the months ahead.

“The Perth Mint now offers an incredibly diverse range of modern, digital platforms for investors in addition to our traditional range of bullion coins and bars, as well as other physical precious metals products,” he said.

“The digitisation of gold via a public blockchain ledger is a natural progression for global commodity markets and the next step in our bid to provide investors the opportunity to securely buy and sell physical gold at the touch of a screen.

“Our mandate is to take Australian gold to the world and we now have products for every type of market and for every type of investor.”

Appearing at the 2019 Gold and Alternative Investments Conference in Sydney this morning, Mr Hayes said the mint’s ETP had grown by more than 45 per cent in the year to September 2019 compared to a global average in that time of just 20 per cent.

That was in addition to the success of its ETF, which since its listing on the New York Stock Exchange in August 2018 has received more than US$160 million in investments (AU$234 million).

Citing a 32 per cent growth in the price of gold in the year to September 2019, Mr Hayes said gold remained the most effective hedge against falling stock markets with PMGT an effective platform for a new generation of investors.

“In the past year we have seen a growing need in the investment community for a more sophisticated and broader range of gold-backed investment options and platforms, and we are committed to meeting this gap in the market,” he said.