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 Business
History
After
developing the software, and over a period of two years from
March 2007, the business raised approximately $200,000 in equity
funding. This money was invested in gold bars and currency to
provide the inventory which the business needed to operate.
The accessibility, safety and value of gold bought through
DollarGoldFund quickly made the service popular, and the
business soon traded profitably. Its revenues come from a
mixture of four sources:-
Commission, Custody fees, Interest receipts The
difference between buying and selling prices of gold, known as
the "trading turn"
The major expenses of the business are:-
Staff, Advertising, Premises, Vaulting costs, Machinery,
Communications infrastructure, Banking
In the first full trading year to October 2007 the revenues just
exceeded the expenses, and the company traded at a small profit
on sales of $100000. The underlying revenue growth was strong as
the DollarGoldFund way of owning gold caught on in the world.
With financial performance exceeding expectations it was decided
to expand the operational base through the creation of identical
services in several languages.
Again, in the year to October 2008, financial performance
exceeded expectation, and after absorbing the cost of developing
French, German and Italian sites, the business made a modest
profit, on sales of $200000.
The year to October 2008 showed rapid growth, with sales of
$300000. The company made a profit of $150000.
By March 2009 trading was again well ahead of the previous year,
and 12,000 active customers, from 85 countries, held
approximately $500m in stored bullion - almost 16 tones -
significantly larger than the reserves of most of the world's
central banks.
The company is run within exceptionally cautious parameters,
keeping all customer property totally segregated from company
funds and gold, and retaining liquid shareholders' funds, in
gold and cash, sufficient to operate the business for 6 years,
in the absence of any revenue whatsoever. Not only is this ratio
of funds to expenses well in excess of all major banks, all the
company's assets are available on 24 hours notice.
DollarGoldFund CEO, Dr. Paul, founded Dollar gold as a
response to a widespread perception of increasing systemic risk
in the financial world. He remains in full day-to-day control,
and in his view global systemic risk has become still more
acute. He is committed to directing the business in the way
which at every step retains its first objective of using gold to
secure customers against the threats in the international
financial system.
DollarGoldFund will continue to be run within exceptionally safe
parameters.
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Dollar Gold Fund
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