First Gold Company to Implement Gold Money Policy

PinkdogPinkdog Posts: 511 Silver ✭✭✭✭
Iamgold is a TSX listed gold mining company. They were one of the first companies to implement a gold money policy. They wanted to pay their shareholders dividends in physical gold, but could not find a way to do it that was cost effective. What is interesting they were a major shareholder in Goldmoney. When Goldmoney was bought by BitGold, Iamgold became a large shareholder in the company we know today, XAU. This is a very interesting connection, highlighting a huge opportunity for the entire gold mining industry to use gold as money. This is now totally possible with the Goldmoney platform. Read the interesting statement issued by Iamgold in 2002:

"IAMGOLD believes not only that gold is first and foremost money, but also that it is superior money to any form of fiat currency. IAMGOLD was the first gold company to implement a Gold Money Policy to use gold rather than paper currency as its main form of money. As of June 30, 2002, IAMGOLD's gold money holdings amounted to some 83,084 ounces of gold.

IAMGOLD was also the first gold company to announce its desire to seek the appropriate mechanisms that would allowiamgold2.jpg (23520 bytes) IAMGOLD shareholders to make the choice as to receiving future dividends in gold or in Canadian dollars. IAMGOLD has thus become the genuine pure gold company: from gold in the ground to gold in the vault without dilution of this pure gold exposure by significant amounts of depreciating fiat paper currencies held as "money".

IAMGOLD believes that the decision by any company as to whether it uses gold or fiat currency as money is a critical one for the gold industry in general. The decision by gold companies to use gold as money clearly enhances gold's price prospects, which is clearly in the interest of gold investors. In contrast, the decision to use fiat currency rather than gold clearly enhances the position of fiat currency, which in effect diminishes gold's price prospects. Gold investors will ultimately decide which approach to gold market development they prefer..."

Another interesting fact, Mahendra Naik, Director, Chairman of the Audit Committee for Goldmoney today from 1990 to 1999, was the Chief Financial Officer of IAMGOLD. He is also the Audit Committee Chairman for a TSX listed base-metals company and a Director of number of private companies.

Iamgold can not sell their Goldmoney shares, XAU, until the lockup period is over this month, July 26th. It will be interesting to see if they will continue to hold the shares and if they will become a major Goldmoney client, if they already are not. I cannot wait to see how many gold mining companies will start using the business platform.

Goldmoney and it's leadership team is very well connected!

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