- Minimum
- $50kAdditions from $25,000
- Term
- 12 monthsThen up to 90 days to close
- Management fee
- NonePaid only from profit, after members
- Reports
- MonthlyWithin 15 business days
The series buys doré and refined gold directly from vetted producers and sells it to refiners, bullion dealers and banks, in repeated cycles over a 12-month term. It holds no shares, mines or land.
What the series does
Bought below the benchmark. Sold near it.
The series earns the difference between the price it pays for gold and the price it sells at, less assay, refining, transport and other costs. That difference can narrow, or become a loss.
Why the discount exists
- No local refining. Doré has to travel to be refined.
- No direct buyers abroad. Small producers cannot reach refiners and banks themselves.
- No easy dollar banking. Being paid in U.S. dollars is slow or hard.
- Prompt payment matters. A buyer who pays quickly is worth a discount.
A low price can also signal a problem with the gold or the seller. For that reason every supplier is checked before any purchase.
How one trade works.
Each step is documented and kept on file. The proceeds of each sale fund the next purchase.
- 1
Check the supplier
Ownership, licences and the origin of the gold are checked under a written anti-money-laundering program.
- 2
Buy below the benchmark
Weight, fineness and a price at a discount to the LBMA Gold Price are agreed. Part of the payment can be held back until the refinery’s assay.
- 3
Export and refine
The gold is weighed, sampled and exported under customs rules, then refined where the buyer requires.
- 4
Sell and collect
The gold is sold at or near the LBMA Gold Price, often to the refiner, and paid into the series’ own bank account.
Illustratively, 10 to 30 days from payment to sale proceeds, sometimes longer. Several trades may run at the same time. Not a forecast.
The term, from start to finish
Each stage has a fixed maximum length.
- Joining · up to 120 daysMoney waits in the series’ own bank account. If $250,000 is not raised, all subscriptions are returned.
- Trading · 12 monthsGold is bought, checked and sold in repeated trades. A statement, and any distribution, every month.
- Closing · up to 90 daysRemaining gold is sold, accounts are settled and a final statement is sent.
How profit is shared.
Each month, realized profit from gold that has been sold and paid for is applied in this order.
- 1
Earlier losses are recovered
Profit first restores any capital members have lost.
- 2
Members receive their target return
The target is set out in the documents and paid only from realized profit. It is a target, not a promise.
- 3
Profit above the target is shared
80% to the Manager, 20% to members. A quarter of the Manager’s share is held back until the end of the term.
How profit is shared, in dollars
A worked example with round numbers.
It shows the arithmetic only. It is not a forecast of what the series will earn. The members’ target return is set out in the documents; the dollar figure used here is for illustration. If profit in a month does not exceed the target, the Manager receives nothing for that month.
| Realized profit in the month (example) | $40,000 | |
|---|---|---|
| 1. Restores members’ earlier losses | − $5,000 | |
| 2. Members’ target return for the month (example) | − $25,000 | |
| Profit above the target | $10,000 | |
| 3. Members’ share, 20% | $2,000 | |
| Manager’s share, 80% | $8,000 | |
| Of which held in reserve until the end of the term, a quarter | $2,000 | |
| Credited to members in total | $32,000 |
Members are credited $5,000 + $25,000 + $2,000. The Manager receives $6,000 now and $2,000 at the end of the term, if the conditions in the documents are met.
Checks on every supplier
Before any purchase, under a written anti-money-laundering and sourcing program, with OECD and LBMA guidance as reference.
- Identity and ownership
- Who owns and controls the supplier
- Licensing
- The licences its mining and export activity require
- Origin
- Where and how the gold was produced
- Sanctions screening
- The supplier and its owners, against sanctions lists
Summary of terms
Gold Series II
- Minimum investment
- $50,000; additions from $25,000
- Who may invest
- Verified accredited investors
- Term
- 12 months of trading. One extension of up to 6 months, only with members’ consent
- Joining period
- Up to 120 days. If $250,000 is not raised, all subscriptions are returned in full
- Management fee
- None
- How the Manager is paid
- Only from realized profit above members’ target return: 80% to the Manager, 20% to members. A quarter of the Manager’s share is held in reserve until the end of the term
- Reporting and distributions
- Monthly, within 15 business days of month end; distributions paid in cash or reinvested
- Withdrawals
- None during the term
- Closing
- Up to 90 days after the term to sell remaining gold and settle accounts
A summary only. The private placement memorandum and the Series Agreement are the contract, and they prevail over this page.
Before you decide
The gold price can move while gold is held. A buyer can pay late or not at all. Gold can be lost, or turn out less pure than stated, and a loss may not be insured. You cannot leave before the term ends, and you can lose money. Important information
Contact Econody Fund
Request the offering documents, or book a call with the Manager.
Verified accredited investors only · Rule 506(c) · No money is accepted through this website