The Hinton Group is very proud and excited to announce the newest offering since 2014 to be added to our panel.
The Bullion Bridge Gold Bond paying a fixed rate return of 6% over a 12 month period, more details below…
Bullion Bridge Limited was formed as a conduit to provide bridging finance to the gold streaming industry. Gold streaming is the process of funding the exploration and extraction of gold from small scale artisanal mines around the world. This gold is in its raw form, known as dore.
Dore bars are usually around 94% gold, which is around 22 karat. Gold is assayed locally in the country of origin by government approved specialists. Once the gold is assayed and the quality has been verified, it can be acquired by our licensed partners and then exported. At this point there are export duties to pay to the government before the gold can leave the country.
Export duties vary between each country, but are typically around 5% of the value of the gold. The gold is then transported by secured and armoured logistical couriers to the specialist regulated refineries around the world. Here the gold is purified until it is the highest quality, 999.9 fine gold (24 karat). At this point it can be sold on international bullion markets, where there is a constant demand.
We have purchase agreements with these refineries to buy 100% of the gold that we import. Once we have completed the process with the refinery, the process is complete and we can start again with funding more gold from the artisanal mines.
Such is the global demand for gold, far outweighing the supply, that we are confident that every ounce of gold we supply will be purchased by the refineries we are engaged with. The artisanal mines that we work with have the capacity to supply around 500kg per month. Currently the price of gold, in its purest form, is around $53,000 per kilo. So these miners supply around $26M of gold per month. We have purchase agreements with them to buy their gold at a fixed price, thus giving them the peace of mind that their costs will always be covered and they are not exposed to fluctuating gold prices.
These miners own their resources on a cooperative basis with the local communities, so all the money is kept locally and used to develop their infrastructure, rather than sent overseas to foreign owned corporations, who are concerned mainly with their own profits.