Tokenized Precious Metals: Frequently Asked Questions
What are Precious Metal Tokens?
Precious Metal Tokens are blockchain-based assets that represent legal ownership of physical gold, silver, and platinum held in secure, insured vaults. Each token (or fraction of a token) is fully backed by the corresponding metal, giving investors direct exposure to precious metals without the need to personally buy, transport, or store them.
Why Use Precious Metal Tokens Instead of Physical Metals?
Owning physical precious metals can be impractical and logistically challenging. Precious Metal Tokens address these issues by removing the most common frictions:
- No purchase hassles
The buying and selling of physical metals requires the inconvenience of travelling to and transacting in the bullion shop. There can be significant costs.
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No transport or storage concerns
Physical metals are heavy, costly to move, and risky to store. Tokens eliminate these risks by keeping metals in insured vaults. -
Improved security
Vaulted storage reduces theft and loss risks associated with home or dealer storage. -
Better liquidity
Tokens can be bought and sold digitally, avoiding dealer delays, the high buy-sell spreads often charged by small local bullion dealers, and limited liquidity during market stress. -
Lower ongoing friction
No handling, shipping, or storage logistics — only a simple monthly membership fee.
Do I Legally Own the Precious Metals?
Yes. Each token represents legal ownership of unallocated physical metal held in trust. The metals are not owned by Wealth99 — they are held in trust, providing an added layer of security. Ownership, custody, and redemption rights are detailed in the relevant whitepaper. Total token supply is independently verified regularly to reconcile issued tokens with metals held in custody. The assets cannot be loaned, pledged, or encumbered in any way, as set out in the whitepaper.
How Are The Precious Metals Stored?
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Metals are stored in insured, audited vaults in Sydney, operated by ABC Bullion.
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Insurance is held at the vault level to protect against theft or damage.
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Storage is unallocated, which allows for the tokens to be efficiently issued and traded.
How Do I Buy or Sell Precious Metal Tokens?
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Precious Metal Tokens can be bought and sold directly on the Wealth99 Platform. Investors may choose to purchase metals as part of a bundle (the Precious Metals Bundle — 70% silver and 30% gold) or buy each token individually. For larger transactions, Wealth99 offers an over-the-counter (OTC) service.
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Prices are secured at the time of order placement, based on live market rates plus a small transaction spread. Published 'spot prices' are indicative only — each token can move several percent within minutes.
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Trading is fully digital, with no personal transport or storage risks. The only ongoing cost is a small monthly membership fee.
Can I Redeem The Physical metal?
Yes. Physical redemption is available, subject to minimums and fees outlined in the whitepaper.
Where Can I Access the Whitepapers?
The whitepaper explains what the tokenised precious metal is, how the metal is held in custody, how tokens are issued and managed, and how physical redemption works. You can view the whitepaper for each coin below.
Which Blockchain Are Precious Metal Tokens Built On?
Precious Metal Tokens are ERC-20 tokens minted on the Ethereum blockchain. Ethereum is the largest general-purpose blockchain, providing security, reliability, and transparency.
As per the ERC-20 protocol, the token has a smart contract that follows a standard characteristic (i.e., name, symbol, decimal precision, etc.) The total number of tokens and token balances can be tracked on the blockchain, which gives full transparency.
What Happens if Wealth99 Becomes Insolvent?
Metals are held by the trustee, not Wealth99. In the event of insolvency, metals would be sold, and proceeds returned to token holders.