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By Econody Research

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The method Econody M uses to compare the ways an investor can hold gold. Each is scored on the same ten characteristics and drawn as a landscape. A taller peak means more of a characteristic, not a better one.

A long-term portfolio across the gold industry: broad diversification and private deals, yearly distributions, quarterly reporting.

Fig. 1 · Ten characteristics · Height = how much of it · Econody M’s qualitative view, not a rating, not a forecast

Ten measures. One shape.

Each series is scored on the same ten characteristics as Fig. 1. The shape describes the kind of exposure. It is not a rating.

Fig. 2Gold Series I
Gold Series I: scores out of 10 on ten characteristics246810Income 4Return of capital 3Gold price link 6Private sourcing 8Diversification 8Physical backing 6Reporting 6Holding period 8Operations 7Jurisdiction 6

A long-term portfolio across the gold industry: broad diversification and private deals, yearly distributions, quarterly reporting.

  1. Income4
  2. Return of capital3
  3. Link to the gold price6
  4. Private sourcing8
  5. Diversification8
  6. Physical backing6
  7. Reporting frequency6
  8. Holding period8
  9. Operating involvement7
  10. Jurisdiction exposure6
Fig. 3Gold Series II
Gold Series II: scores out of 10 on ten characteristics246810Income 9Return of capital 7Gold price link 4Private sourcing 9Diversification 4Physical backing 9Reporting 9Holding period 4Operations 9Jurisdiction 8

Physical gold traded over a fixed 12-month term: monthly distributions and statements, a set end date, returns driven by the purchase discount.

  1. Income9
  2. Return of capital7
  3. Link to the gold price4
  4. Private sourcing9
  5. Diversification4
  6. Physical backing9
  7. Reporting frequency9
  8. Holding period4
  9. Operating involvement9
  10. Jurisdiction exposure8
01Income
How often cash is paid out to investors along the way.
02Return of capital
How soon, and how predictably, invested capital comes back.
03Link to the gold price
How directly value follows the price of the metal.
04Private sourcing
How much of the result comes from transactions the manager negotiates.
05Diversification
How many different assets and sources of return are held.
06Physical backing
How much of the value rests on metal or other hard assets.
07Reporting frequency
How often an investor receives a statement.
08Holding period
How long capital is normally committed.
09Operating involvement
How much hands-on work the manager carries out.
10Jurisdiction exposure
Sensitivity to local laws, permits and export rules.

Method. Scores from 0 to 10 are Econody M’s qualitative assessment of how each structure works: its terms, its cash flows and who must perform. They are not measurements of past results, not forecasts and not fund performance. Comparisons with other ways of owning gold are subject to legal review.