Tokenization of gold
It is an undeniable fact that gold has proven itself and withstood various turbulences over time. Gold is and will always be a safe investment. Dubai-based Althamin International DMCC is democratizing access to gold using modern technology through tokenization. Mauritian Mohammad Parwez Nunnoo, Chief Executive Officer of Althamin International DMCC, tells us more.
GOLD IS A SAFE INVESTMENT
More than ever we are aware of the devaluation of the currency every day. All economic indicators are in red and inflation is rising. In this financially uncertain environment, many investors are returning back to safe investments. “What has not devalued? What has stood the test of time?” Those are the questions Mohammad Parwez asks. The world is in a state of flux. All international fi nancial institutions are rushing to seek refuge in gold. “However we noticed this is not the case for Mauritian and African investors because of various diff erent reasons. We have addressed all those barriers and created Golar Token! The first African gold backed digital-token.”
GOLD IS HEAVY, LET’S MAKE IT LIGHT
Althamin’s goal is to democratize access to gold for all categories of investors; from international institutional investors to small and private investors. Investment in physical gold has many advantages but also few drawbacks. The main issues of physical gold are accessibility, storage, security and ability to resell on a regulated market. Today in the internet era all these constraints can be addressed using Blockchain technology. “If we want to solve these difficulties, we must turn to tokenization and map each token on physical gold. The Golar Token will be safely stored in e-wallets and the mapped gold bars will be stored in a secured, insured, audited and regulated vault. A complete peace of mind and security assurance to all investors,” says Mohammad Parwez Nunnoo.
LESSONS FROM THE PANDEMIC
The pandemic has revealed the fragility of all stock markets and economies. Various markets have crashed except for two stock sectors: precious metals and crypto currencies. Throughout the pandemic, as markets sank, the value of precious metals and crypto currencies rose as never before. “As we said, gold has been a safe haven for millennia. Gradually we are coming out of the sanitary and economic crisis, we are seeing many countries putting up various regulations design to accept crypto currencies. Some have even announced the launch of a fully governmental crypto currency. However, the major weakness of crypto currency remains its high volatility. The value of Bitcoin had tumbled down by more than 50% of its all-time high in a matter of hours. Investors who had Bitcoin in their portfolio lost substantial amount of money. Gold, on the other hand, remained very stable. We have seen an all-time record high of $2,063 per troy ounce in August 2020 to $1,823 per troy ounce a couple of days ago. This
once again shows that it makes perfect sense to invest in gold,” explains Mohammad Parwez Nunnoo.
WHY ARE WE USING BLOCKCHAIN ?
Today, it is clear that digital has taken over the world stage. The economy and finance are undergoing major changes. There is a new dynamic, a new shifting. Blockchain is now understood and accepted. Blockchain is public, secured, transparent, dynamic and infinite. “How do you merge technology that is moving at very high pace and a currency of ancient time? This is where we resolve all the problems. We merge both of them creating the tokenization of LBMA certifi ed 999.98% gold, a perfect hybrid product for investment.”
HOW TO GET ACCESS TO IT?
Anyone wishing to invest must open an account on the platform. However, they will have to comply with all the company’s requirements. In line with the FATF guidelines for AML/CFT a strict due diligence will be conducted designed to fight against money laundering and financing of terrorism. The regulations are very tough and are monitored by recognized and qualifi ed bodies. “A detailed screening of all KYC documents and source of funds are carried out before activating the account to allow money transfer to buy Golar Tokens and trading on the platform.”
Mauritius has the right financial and legal framework, is politically stable and is strategically located between Asia and Africa. Mauritius has also the will to become a Fin-tech hub. “We are helping Mauritius to become a modern and in novative international financial center. Our company is based in Dubai and we wanted to launch this project in an African country where there’s stability, security, respected institutions and good air connectivity amongst others; and Mauritius ticks all those boxes. It will certainly make international headlines as it is the first African gold backed virtual token. The other serious gold backed virtual tokens are based in USA, Australia, Germany and Switzerland. Mauritius has also send the right signal with the consultation with various stakeholders in the drafting of the Virtual Asset Business Bill. Mauritius is the ideal location to launch such a project,” says Mohammad Parwez Nunnoo. “Today in Mauritius, investors are coming in and have limited options to invest into. This will not only attract more investors to come to Mauritius but also give existing investors a different asset class to invest into. A safe investment with good return at low risks.”
DIFFERENT SCHEMES OF INVESTMENT
The acquisition and trading of gold will be democratized. The token is accessible to both large and small investors. You can choose to invest in various schemes of the gold backed token; wedding, retirement, education or saving schemes. Short term or long term investments, depending on the investor’s strategy. All types are catered for. There will be around 500,000 tokens offered on the platform which is an equivalent of approximately 500 kilos of 24 Karat LBMA certified physical gold in the vaults. “To give you an example, let’s say a father is planning the wedding of his daughter. On a monthly basis he can buy a small amount of Golar Tokens, and coming up to the wedding he would have accumulated enough Golar Tokens required for the jewellery set. And as he cannot have the physical gold, we will securely transfer the physical gold to the jeweler of his choice. He will get a purity certificate which certifies the gold is of 24 Karats. Then he will only have to pay for labour charges to his jeweler for his jewellery to be done.” Investing in property is not bad. But when an emergency occurs and someone needs immediate liquidity, it’s very difficult to sell the property, especially in this crisis context. Golar Token solves this problem. Upon a few clicks the Golar Tokens in the e-wallet are traded off and money is credited to the dedicated bank account.
A COMPANY WE TRUST
Althamin International DMCC is no stranger to the world of finance and the gold market. The Dubai-based company is known to be a key player in Precious Metal & Stones Trading, Mining Operations and Financial Activities in the UAE. Althamin International DMCC has fully operational subsidiaries in Ghana, Tanzania, Burundi, Madagascar,
Belgium and now Mauritius. It has acquired experience over time and can now effectively manage the sourcing and trading of gold and diamond. The team of Althamin International DMCC has been working for over 3 years to come up with his huge project in Mauritius. They are working closely with experts such as Wakanda 4.0 for Fin-tech aspects and McMillan Woods for financial regulations and advisory. The team also comprises of various specialists
like analysts, mathematicians, engineers, stock traders amongst others who come from all over the world; Switzerland, France, Singapore, the UK, India and the UAE, working night and day on this project. “Our major strengths are that we are in mining and trading of gold and we have a team with great know how and expertise. We control our field, our system and our product. We are gold experts in all its form. The vertical integration of all the supply chain is under our control and we have already secured the required capital investment”, explains Mohammad Parwez Nunnoo.
Althamin International DMCC
P: +971503501228 (Dubai)
+230 52 50 28 12 (Mauritius)