How the partnership is structured
Each partner forms their own en commandite partnership with Mass Capital, on common master terms. The partnership provides trading capital to licensed gold refineries, which buy physical gold below spot from vetted sellers and sell it close to spot. Net trading profit after all costs is distributed monthly, on the terms of each partner's own partnership supplement.
- Structure
- A separate, numbered Mass Gold Partnership En Commandite for each partner, on common master terms
- General partner
- Mass Capital Holdings (Pty) Ltd
- Operators
- Licensed gold refineries, each under its own refinery agreement
- What is traded
- Physical gold, bought and sold directly, not on any exchange
- Trading desks
- South Africa, Zambia (once its permits and approvals are in place), or both
Profit comes from the margin between the buying and selling price. The partnership does not depend on the gold price rising.
How it works
The partner contributes
The partner completes FICA, signs their partnership supplement and partner acknowledgement form, chooses a trading desk, and pays into their partnership's own bank account. The once-off establishment fee and operator fee are deducted; the balance becomes the partner's capital account.
Capital is advanced in tranches
Mass Capital and an independent signatory approve each tranche from the partnership's account to a licensed refinery's dedicated trading account. Capital is used for one purpose only: buying physical gold for resale. No gold is bought until the insurance is in place.
Licensed refineries buy and sell gold
Gold is bought below spot from KYC-checked sellers, assayed, held in segregated partnership stock and sold to refiners and bullion buyers.
Sale proceeds go to each partnership
Every bar bought is allocated, in grams, to specific partnerships at the moment of purchase and recorded in a stock register. Each partnership's profit comes only from its own grams, and when a bar is sold each partnership's share of the proceeds is paid straight into its own account. Profit is calculated monthly after refining, assay, freight, insurance, vaulting and other trading costs.
Net profit is shared
Each refinery's own share, set in its refinery agreement, comes off first. The partner's share is paid monthly from their partnership's profit. Management fees and profit split are set in each partner's own partnership supplement. Any loss is recovered from later profit first.