TroyGold Krugerrand Token: Frequently Asked Questions
Everything you need to know about the TroyGold Krugerrand (TGLD) token, available exclusively on Mesh.trade.
From 11 to 25 March 2025, registered Mesh investors will have access to the TroyGold Krugerrand (TGLD) token, which offers direct legal ownership of the exact amount of physical gold purchased, from as little as R50. The token will be offered at the lowest price for a 1oz gold bullion Krugerrand coin available to retail investors, which can amount to a discount to the prevailing market price of up to 3%.
This is a new way of owning gold, and you may not be familiar with Mesh.trade’s investment platform. This quick guide will help you understand the details of the token, how to invest, and how it all works.
The Basics
Who is TroyGold?
TroyGold is a South African venture-capital-backed fintech with offices in Stellenbosch and Pretoria, that provides gold bullion investment and credit services to physical gold owners and retail investors. TroyGold is a registered Krugerrand dealer with the FIC (Financial Intelligence Centre) of South Africa, and a Registered Credit Provider (NCRCP 12342) under the National Credit Act (NCR) of South Africa.
What is the TroyGold Krugerrand Token offered on Mesh?
A 1oz gold bullion Krugerrand is the premier gold bullion coin available to South Africans as the most cost-effective physical gold investment asset. The TroyGold bullion Krugerrand coins are produced by the Rand Refinery.
A bullion Krugerrand is a gold coin primarily designed for investment purposes. It closely tracks the spot price of gold and is widely recognised as a store of value.
Bullion Krugerrands are made of 22-karat gold with a copper alloy, giving them added strength and durability compared to pure gold coins. Their global recognition, ease of trade, and direct link to the gold spot price make them a trusted choice for diversifying investment portfolios.
The Bullion Krugerrand Tokens that TroyGold has issued on Mesh.trade represent physical gold holdings stored in the globally recognised secure vaulting facility of Brink’s in Johannesburg.
Once registered on Mesh, investors can buy and sell any mZAR denomination worth of gold above the minimum investment threshold of R50 for full ownership or fractional co-ownership of a bullion Krugerrand coin.
Each TroyGold Krugerrand Token that you buy or sell on the Mesh platform is worth 1 ounce or one physical Bullion Krugerrand coin. These tokens can be further fractionalised when they are bought or sold on Mesh.
What is the difference between a Bullion Krugerrand and a Proof Krugerrand?
The main difference between a Bullion and a Proof Krugerrand coin lies in their intended purpose, production process, appearance, and value.
Bullion Krugerrand:
Purpose: Primarily an investment vehicle, valued for its gold content.
Production: Mass-produced with a focus on efficiency.
Appearance: Matte finish, simpler design, may have minor imperfections.
Value: Primarily tied to the spot price of gold, with a small premium for minting and distribution.
Collectability: Not typically considered a collectible, though some years may have higher value due to mintage figures.
Proof Krugerrand:
Purpose: Primarily a collector’s item, showcasing the mint’s craftsmanship.
Production: Meticulous process with multiple strikes, resulting in a flawless finish.
Appearance: Mirror-like, frosted finish with sharp details and intricate designs.
Value: Higher premium over the spot price of gold due to the production process and collectibility.
Collectability: Highly collectible, with value influenced by rarity, condition, and historical significance.
If you’re looking to invest in gold for its intrinsic value, a bullion Krugerrand is a good option. If you appreciate coin artistry and are interested in collecting coins, a proof Krugerrand might be more appealing.
It’s important to note that both types of Krugerrands contain the same amount of gold. The choice between them depends on your individual goals and preferences.
What is the Gold spot price?
The spot price for a precious metal is the current market price for that precious metal traded in the wholesale market for immediate delivery. Spot prices are price quotations for trading large standard quantities of a precious metal in the wholesale market – not individual bullion bars or coins like the Krugerrand.
The spot price is usually quoted in US dollars per troy ounce and refers to a quotation for a standard, but large quantity. The spot price is also known as the international ‘paper price’.
Physical gold bars and coins are priced using the spot price as a benchmark, either trading above or below the spot price, depending on the supply and demand at the time of that particular bar or coin. Most of the time, because of fabrication costs, physical gold will trade at a premium to the paper gold price (spot).
Because precious metals are traded 24 hours a day around the world during the week, there will always be a live and changing spot price that feeds in from around the world wherever trading activity is live.
About The TroyGold Krugerrand Token
What do I own when I buy a TroyGold Krugerrand token on the Mesh platform?
Mesh allows for fractional ownership of TroyGold Krugerrands through the tokenisation of physically stored 1oz gold bullion Krugerrand coins on the blockchain.
When you purchase a TroyGold Krugerrand token on Mesh, legal and immutable ownership of the exact amount of physical gold corresponding with the value of the tokens that you have purchased, is transferred into your Mesh account.
All TroyGold’s customers’ gold holdings are fully allocated, meaning you are buying either a whole or a fraction of an actual gold bullion KrugerRand that is securely stored, fully insured and independently audited in a high-security precious metals vault.
Even if you purchase a fraction of a 1oz coin, you are allocated as a co-owner of a gold bullion Krugerrand coin securely vaulted at Brink’s.
You can download audited monthly attestations of reserves detailing the number of Krugerrand coins allocated to Mesh clients in the shared RMB and TroyGold vault at Brink’s.
What proof do I have that I own the amount of gold indicated in my Mesh account?
Whenever you buy or sell a TroyGold Krugerrand token on the Mesh platform, a Gold Ownership Certificate is generated and can be downloaded from your Mesh account. The Gold Ownership Certificate confirms the full amount of gold you own, fractionalised to 7 decimal points.
I can’t afford to buy a full Krugerrand now. Can I accumulate tokens over time to make up a full ounce?
Yes. You can accumulate gold via subsequent issuances which TroyGold will launch from time to time (at their regular market price) or on Mesh’s secondary market, when tokens are available.
The redemption minimum is a 1-ounce gold bullion Krugerrand coin. Once you have accumulated sufficient tokens to reach 1 full ounce (31.1 grams) of gold, you can either continue to vault your Krugerrand coin at Brink’s or notify Mesh that you want to redeem your Krugerrand coin(s).
Once notified by Mesh, TroyGold will contact you directly to arrange for secure delivery of the Krugerrand coin(s) to your home. Please note there may be associated costs (such as shipping or administrative fees) and procedural steps (including identity verification and compliance checks) before you can take physical delivery.
What are my transaction fees when buying/selling TroyGold Krugerrand coins on Mesh?
During the two-week subscription period (11 to 25 March 2025), TroyGold will publish an indicative price per ounce on the Mesh Asset Detail page.
Once the subscription book closes, Mesh will use TroyGold’s discount to the market price to calculate the final settlement price for the fractional amounts investors have subscribed for, and will add the Storage and Insurance fee. A Storage and Insurance fee for physical gold storage at Brink’s for a period of two years will be payable upfront. This fee is calculated on 1.2% of the spot price, and added at the time of settlement as part of your total committed token value.
To give you an example:
If you invest mZAR 106.7
- 100 goes to the Spot price in the market at the time of settlement;
- 5.5% is added for fabrication, handling, logistics and distribution costs; and
- 1.2% is added for two years of Storage and Insurance.
So the price per token we use to calculate your allocation will be:
- Spot Price + (Spot Price x 5.5%) + (Spot Price x 1.2%)
A trade confirmation showing the actual price paid for the token, based on the live gold price, the TroyGold discount, and the storage and insurance fees, will be sent to subscribers on settlement.
How is the price of the TroyGold Krugerrand token calculated?
While gold itself has a universal spot price (the current market value for pure gold), the price you pay for a Krugerrand is calculated differently.
The journey of a Krugerrand’s price looks like this:
- You start with the spot bullion price of gold. This is the basic raw material cost at the refinery.
- You then add fabrication costs for minting the actual coins.
- You add handling, logistics costs to market, and distribution expenses.
- Finally, you add broker/dealer margins for businesses selling to consumers.
That’s why Krugerrands always cost more than the equivalent weight in pure gold at the prevailing spot price.
The good news? For this launch on Mesh, TroyGold has negotiated a special discount off the normal retail market price for bullion Krugerrands. This discount will apply to the prevailing retail price on the final settlement date (March 27, 2025). So you’re getting real gold Krugerrands at better-than-standard retail pricing!
When subscription closes, a two-year Storage and Insurance fee for the physical Krugerrand coins, up until 31 March 2027, at 1.2% of the committed token value, will be added to the price. This fee covers the cost of Storage and Insurance for the physical Krugerrand coins, which will be stored by the world-class, secure Gold Vaulting company Brink’s and insured by Lloyd’s of London.
At settlement time, a calculation will be done converting the mZAR amount that investors subscribed for into the corresponding amount of tokens representing the grammage of physical gold, at the prevailing TroyGold discounted price on the date of issuance, less the two-year Storage and Insurance fee.
Where is my gold stored?
Gold Krugerrands are safeguarded in a secure vault under the management of Brink’s, the world’s leading precious metals high-security vault company, in their Johannesburg facility at the OR Tambo Special Economic Zone.
Brink’s has stringent security measures and insurance coverage in place to protect against theft, loss, or damage.
The vault undergoes regular third-party audits to ensure the integrity and safety of stored assets, verifying that reserves match the total issued tokens and providing transparency through publicly available, audited attestation reports published monthly on the Mesh platform.
How do I know my gold is safe?
The security of your gold holdings is TroyGold’s top priority. All customer holdings are fully insured against loss or theft by Lloyd’s of London, the world’s leading specialist insurance provider and market.
Brink’s Global, TroyGold’s vaulting provider, is the world’s premier provider of precious metals logistics and storage solutions. As part of TroyGold’s commitment to safety, only the vaulting custodian has physical access to the vault holdings. Thus, no TroyGold or Mesh employee can enter the vault or access the holdings.
Is there a minimum amount I have to own in order to redeem my gold?
TroyGold only vaults 1 oz gold bullion Krugerrands in South Africa. As such, gold withdrawals are in 1 oz Krugerrand coins. Gold withdrawals can therefore only take place in these denominations. Once you have accumulated sufficient fractions of a token to reach 1 ounce (31.1 grams) of gold, you can choose to either continue to vault your Krugerrand coin at Brink’s or you can notify the Mesh customer support team at help@meshtrade.co that you want to redeem your Krugerrand coin. They will assist you in initiating the redemption process with TroyGold.
Once notified by Mesh, TroyGold will contact you directly to arrange for secure delivery of the Krugerrand coin(s) to your home.
How do I withdraw/redeem my gold?
Redeeming your token for the underlying asset is a simple process. If you wish to exchange your digital tokens for the physical asset, please reach out to our customer support team at help@meshtrade.co and they will assist you in initiating the redemption process with TroyGold.
Please note there may be associated costs (such as shipping or administrative fees) and procedural steps (including identity verification and compliance checks) before you can take physical delivery.
How long does it take me to get my gold when I redeem?
Once your request is submitted to TroyGold, a member of their team will contact you to verify your particulars and make the necessary arrangements for delivery. Deliveries can take anything from 48 hours to a few days, depending on the location of your request.
Will Gold be available on the Mesh Secondary Market after this subscription closes?
Mesh’s Secondary market for Gold will be open on a willing seller, willing buyer basis. Secondary market trade is expected to be fairly limited due to the high demand for Gold and because investors tend to use a “buy and hold” strategy for this asset class.
Investors set their own sell/buy prices on the Mesh secondary market, but it is assumed that any subsequent secondary market price on Mesh would include the remaining vaulting fee associated with the token (valid until 31 March 2027)
What happens after 31 March 2027, when the vaulting fee expires?
When the vaulting fee expires, you will have two options. You can opt to receive an invoice from TroyGold for an extension of your vaulting fee via Mesh, which you will need to settle by funding your Mesh account.
Alternatively, you can choose to sell a portion of a token that you hold, to cover the extension of the vaulting fee. If you choose this option, you should be aware that your gold holdings will be reduced by the amount payable for this fee.
How risky is gold as an investment?
Gold is often seen as a safe bet, especially during times of economic uncertainty. It holds its value over time and can act as a hedge against inflation. However, its price can be volatile in the short term, influenced by factors like global events and market shifts.
Gold doesn’t generate income, so returns come mainly from price appreciation. Appreciation in price for a Krugerrand coin can be as a result of the appreciation of the gold price itself which is primarily quoted in dollars.
As with any investment, it’s important to consider your financial goals and risk tolerance before diving in. A balanced portfolio can help manage the risks.
How do I create a Mesh Account?
Creating a Mesh account is simple. Go to www.mesh.trade to sign up and follow the prompts to complete your identity verification. Remember to have your Identity and Proof of Address documents on hand.
What is mZAR?
mZAR is a stablecoin issued by Mesh tied to the value of the South African Rand (ZAR). As a decentralised digital currency, mZAR serves as a convenient and secure means of transacting on the Mesh platform.
One of the primary functions of mZAR is to fund trades on Mesh. You can use mZAR to facilitate various transactions and activities on our platform, providing a seamless and efficient way to engage in trading.
A notable advantage of mZAR is its ability to be transferred directly between Mesh accounts without the need for intermediaries. This feature ensures fast and direct peer-to-peer transactions, enhancing the accessibility and ease of use for our users.
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