Finweek English Edition
The ‘golden’ power of collaboration and why businesses are better together
The SA Gold Coin Exchange and The Scoin Shop has signed an exciting agreement for a technology-led solution with Troygold.
the South African Gold Coin Exchange (SAGCE) and The Scoin Shop are known as the leaders in gold coin trading. With over 45 years of experience in the gold coin market, the business is constantly evolving to enhance the customer experience. Rael Demby, CEO of The SAGCE and The Scoin Shop, believes that change is inevitable in life and business. If technology is progressing, so must businesses. The SAGCE and The Scoin Shop were the first to bring retail shops, e-commerce and cryptocurrency payment systems to the industry. They are once again pioneering new technologies by signing a distribution agreement with Troygold, a Stellenbosch-based fintech start-up.
Demby says: “To thrive in a rapidly changing world, we are committed to flexibility and adaptability. Our customers are looking for a competitive edge and we believe that is Troygold and their fractional ownership technology. Troygold’s home-grown technology digitises physical gold, physical bullion and Krugerrands via Troygold’s technology.”
Troygold was founded in 2018 by brothers Bastiat and Dane Viljoen. The pair have international experience in the investment banking and gold mining industries. Dane explains: “Being exposed to gold in both the banking and mining sectors provided us with a view of the gold value chain and the hassles a gold owner faces. We saw a gap for a technologyled solution that would extend financial services to physical gold owners. In short, storing your wealth in a stable, non-inflationary money like gold, whilst enjoying the same financial products that those with paper currency have access to.”
The SAGCE and The Scoin Shop are self-confessed “traditional gold bugs” and believe that gold is for everyone. While looking for a future that redefines gold ownership, they encountered Troygold’s technology-led solution that makes gold ownership easy, simple and safe and allows gold owners to do more with their gold – accessing payments and other financial services on their gold holdings.
Progress can’t happen in silos. Working collaboratively – within your ecosystem to solve problems – generates the kind of energy that fuels growth, innovation and creativity. Developing value-aligned agreements that focus on common goals and complementary strengths is key to ensuring successful outcomes for all.
The SAGCE, The Scoin Shop and Troygold’s common goal is to make gold ownership more accessible. There is no better approach to solving challenges than the famous saying of two heads are better than one. Harnessing the strengths and abilities of others from different corners of your ecosystem is one way for businesses to scale their innovation and solve complex challenges.
Via an App Store- and Play Store-supported Troygold mobile app, a customer opens a Troygold account which offers a gold savings wallet that digitises the customer’s gold – bought or uploaded onto the platform – and linked to a Mastercard debit card (issued by sponsoring bank Access Bank) that enables spending of the gold’s rand value at any Mastercard-accepting store. In SA, the gold savings wallet is linked to specific, numbered gold Krugerrands in a vault. Each owner receives an ownership certificate that indicates which bar or coin (with indicated serial number) the customer owns, the percentage ownership, along with details as to where it is stored.
Troygold currently has storage facilities in Singapore and Johannesburg, where the physical bullion bars or gold coins are securely stored and fully insured in the world’s safest vaults.
The Scoin Shop has 11 retail stores in all major centres in South Africa and an e-commerce platform. Troygold products will be marketed via this strong foothold, allowing Troygold to scale its solution and reach more South African gold owners through the safe and trusted environment of a Scoin store. This collaboration creates a store network of physical on-ramps into the digital Troygold platform. South African customers can upload or withdraw gold Krugerrands into and from the Troygold platform, directly from The Scoin Shop’s physical retail outlets.
Enabling a broader market to save and transact in fractions of gold is particularly appealing, especially since gold is a finite resource that has stood the test of time and is free from the uncertainty and volatility of fiat currency and cryptocurrency. Bastiat Viljoen, CEO of Troygold, explains that the ongoing volatility of the global financial system and the deteriorating value of fiat currency make a strong argument for a return to gold-backed stores of value. “Gold has a 6 000-year track record as a safe store of value and is the only money that carries no counterparty risk. Troygold ‘lights up’ that gold with utility and turns it into something gold owners can use for day-to-day transactions and finance.” ■