Goldflorin vs. Precious Metal Financial Products

Goldflorin only provides investments in 100% physical gold which means not a “paper metal” product, which means that your metal is not dependent upon the performance of, for example, a contract for difference (CFD), or commodity futures to obtain and redeem metal when you desire to access it or to sell it.

These products do not provide direct ownership of gold, and therefore expose clients to counterparty risk as they are dependent upon the program issuer’s ability to meet its obligations. Nearly all “paper metal” programs operate on a fractional reserve basis, which means that if the majority of the program’s customers would like to redeem their metal for cash at once, the asset manager or offering party would not be able to fulfill its obligations against their investors. In other words, “paper metal” products just represent a promise at their best efforts to pay metal or the cash equivalent, which is not a guarantee.

Unlike the fractional reserve nature of “paper metal” programs, the quantity of allocated customer metal at the Goldflorin Global Custody foundation is always equal to the quantity of metal Webstored in our vaults. This one-to-one and full captive ratio is always maintained and is a foundational feature of Goldflorin’s governance model, which is controlled by the Dutch Financial Market Authority (AFM). Your precious metals are not recorded on Goldflorin B.V.’s balance sheet, which means that Goldflorin B.V. does not have any direct claim upon the metals themselves. The Goldflorin Global Custody foundation simply safeguard all gold on your behalf.