The World Gold Council, together with law firm Linklaters and consultancy Hilltop Walk Consulting, has launched a new framework aimed at modernizing the global gold market.
The initiative introduces a structure called Pooled Gold Interests. This system allows investors to hold fractional ownership of physical gold stored in secure vaults. Investors will be able to buy, sell, and transfer even small amounts of gold more easily.
The framework is designed to make gold trading simpler and more efficient. It also enables gold to be used as collateral in financial markets while ensuring secure transfers of ownership between parties.
At present, gold trading mainly takes place in two forms. Allocated gold gives direct ownership of specific bars but is complex and costly to manage. Unallocated gold offers higher liquidity and lower costs, but carries the credit risk of the institution holding the account.
This new model builds on recent industry consultations and follows guidance from the Financial Markets Standards Board, marking a significant step in bringing innovation to the gold investment space.
