Bullion manager aims to restore precious metals as currency globally

A cost-effective wealth generative solution – BullionGold facility – has been made available by gold bullion dealing, investment and vaulting company SA Bullion, thereby enabling investors from all segments of the market, locally and globally, the ability to establish and grow their gold investment portfolio within their monetary needs.

SA Bullion enables investors to hold gold and silver as alternatives to cash.

SA Bullion founder and co-CEO Clint O’Brien states that the company’s ability to achieve optimal price efficiencies in the gold bullion market allows for the increased accessibility of this commodity to the broader public.

“Our BullionGold facility allows people to acquire gold from as little as R500 a month. Seventeen years later, those R500 monthly contributions have amounted to R389 000 today, assisting families in accumulating funds for important milestones, like [putting themselves or their children through] tertiary education,” he says.

O’Brien explains that the company works with reputable gold refineries to deliver sustainably sourced and conflict-free gold, while SA Bullion’s provision of secure vaulting solutions and liquidity mechanisms enables for stocks of gold to function like cash.

Currently, the company provides vaulting facilities for clients wanting to hold their precious metals locally in South Africa and offshore in cities such as Dubai, in the United Arab Emirates, London in England and Zurich in Switzerland.

In addition, SA Bullion’s globally mobile app, will offer this capability, underscoring the company’s readiness to deliver its solutions across Africa and beyond.

“We’re always evolving. Currently, we’re in the final development phase of GoldStore, an app to enable mass delivery of our precious metals solutions globally, focusing on Africa. We’ve recently launched in Zimbabwe and are expanding our footprint across the continent, beginning with Kenya, Zambia, Nigeria and Ghana,” notes O’Brien.

The company is also developing a novel approach in producing its own products to achieve cost efficiencies for its investors. The SA Bullion silver kilobar, bullion wearables and jewellery products are examples of new product lines offering greater diversification for precious metals portfolios.

Steadfast Perspective

SA Bullion views gold as an “ultimate currency” and O’Brien recalls that since 1971, gold has appreciated by 9% in US dollar-denominated value and 15% in South African rand value, yearly.

The company also foresees this trend continuing as national deficits persist, which could lead to the perpetual devaluation of fiat money – a government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather backed by government  faith and confidence in the government that issued it.

O’Brien highlights that his devotion to gold started in earnest in 2006 when Ben Bernanke succeeded Alan Greenspan as the governor of the US Federal Reserve. From this, he notes that it was clear to SA Bullion that the monetary policy that was in place would continue to erode purchasing power and that the US would export currency risk and financial instability globally.

“With the onset of the global financial crisis in 2007/08, our hypothesis was proven right, and even today, reckless monetary policy continues unabated, and for as long as the world is flooded with fiat money, gold will continue to assert itself as the ultimate currency,” asserts O’Brien.

In 2005, SA Bullion decided to establish its precious metals management business to offer precious metals asset classes to all South Africans, Africans and then worldwide.

O’Brien highlights that understanding the legislation and engaging with regulators such as the Financial Services Board, Financial Sector Conduct Authority and the South African Reserve Bank was key to the success of its operations. 

Following SA Bullion’s presentation to the South African Reserve Bank board, he says it was concluded that the SA Bullion business would be of public benefit, and the company obtained numerous State approvals that would achieve pricing efficiencies that were previously unavailable.

In June 2007, SA Bullion took on its first clients, with gold priced at R4 480/oz. 

“Today, gold’s value has increased roughly tenfold. Those early clients are still with us and have been richly rewarded. Today, they are joined by tens of thousands of SA Bullion clients,” concludes O’Brien.