What is the legal principle behind fractional gold ownership?

The legal principle allowing direct ownership in owning any fraction of this digitised gold is one of co-ownership – this allows you to enjoy full legal title of a portion (or full), of a unique gold coin or bar in the vault.

In South Africa, the only gold form held in the vault is 1 ounce gold Krugerrands.

A customer therefore has no counter-party risk, as the user is the legal owner of the gold – regardless of the size of the fraction or portion owned.

What is counter-party risk

Counterparty risk is the probability that the other party in an investment, credit, or trading transaction may not fulfill its part of the deal and may default on the contractual obligations.

Updated on: 22/05/2024