How it works

How to Buy Online

The Gold and Silver Standard can be purchased online with ease. Just visit www.ainsliewealth.com.au and complete your purchase there.

How to buy Over the Counter (OTC)

The Gold and Silver Standard can also be purchased over the counter. Please visit our OTC page to learn more about OTC.

Both Gold and Silver Standard are each ERC20 (Ethereum network) tokens. Each token represents 1g of either gold or silver to 4 decimal places. i.e. 1.0000 AUS = 1g gold

Tokens are only created (minted) on metal already safely secured. There is no ICO or fundraising to first secure the metal. The metal is already there. The link between each token and the underlying precious metal is that each token is a Call Option for 1g of the corresponding metal. Metal can be redeemed by exercising the Option with Ainslie Wealth and, if applicable, payment of the Strike Price to execute that Option. Exercising the Option is as simple as transferring your tokens to Ainslie Wealth and requesting redemption for metal. The Strike Price for each Option is $1,000 however the Strike Price is waived (NIL) for:

  • 1,000 AUS (being redeemed for a 1kg gold bullion bar), and/or
  • 50,000 AGS (being redeemed for 5 x 10kg silver bullion bars)
  • Or whole multiples thereof. i.e. 2,000 AUS or 150,000 AGS, etc

A leading Australian law firm has deemed that these tokens are not considered a security and therefore can be freely traded on any exchange.

All the metal is held by a clean entity, Gold Silver Standard Custodian (GSSC Pty Ltd) free of any liabilities other than the tokens on issue.

A secure but publicly viewable database maintains a record of:

  • All bullion bars secured
  • Each bar’s serial number
  • The transaction ID (TXID) for when the tokens for that bar were minted – bar entered
  • The transaction ID (TXID) for when the tokens for that bar were burned – bar removed

A portal (via Etherscan) to the contract address allows anyone to view the number of tokens on issue. Therefore at any time, anyone can interrogate the system to see that # tokens = # grams metal.

This is verified quarterly by an independent global assurance firm. See here for more details.

Each time a token is transferred from one wallet to another, a fee is deducted from to cover the real world costs of vaulting, insurance, audit, handling and administration. See here for more details.

Minting

Upon metal being secured the bars (weight, brand, serial number) are entered into the database.

The minting software reads that database and mints the new tokens corresponding to that metal added and updates the database with the TXID for each bar.

Ainslie Wealth then distribute those tokens to exchanges on market demand or directly to OTC customers.

Burning

Upon a token holder redeeming their tokens, Ainslie Wealth will burn those tokens through the burning software, which sends them to the burn address (forever gone) and updates the database with the bars removed and TXID for the burned tokens.

The bars are removed from Reserve Vault and handed over via Ainslie Wealth.

This whole structure and the terms of use are set out clearly in the Token Holder Agreement which you can find our gold terms and silver terms.